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Senate File 619 - EnrolledAn Actrelating to state and local revenue and finance by
modifying future tax contingencies, the state inheritance
tax, the sales and use tax relating to food banks, the tax
on promotional play receipts, mental health and disability
services funding, school district funding, commercial and
industrial property tax replacement payments, providing
for housing incentives, providing for other properly
related matters, making appropriations, and including
effective date, applicability, and retroactive applicability
provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
DIVISION I
FUTURE TAX Contingencies
Section 1. 2018 Iowa Acts, chapter 1161, section 133, is
amended by striking the section and inserting in lieu thereof
the following:
SEC. 133. EFFECTIVE DATE. This division of this Act takes
effect January 1, 2023.
DIVISION II
child dependent and development tax credits
Sec. 2. Section 422.12C, subsection 1, paragraphs f and g,
Code 2021, are amended to read as follows:
f. For a taxpayer with net income of forty thousand dollars
or more but less than forty-five ninety thousand dollars,
thirty percent.
g. For a taxpayer with net income of forty-five ninety
thousand dollars or more, zero percent.
Sec. 3. Section 422.12C, subsection 2, paragraph a, Code
2021, is amended to read as follows:
a. The taxes imposed under this subchapter, less the amounts
of nonrefundable credits allowed under this subchapter, may
be reduced by an early childhood development tax credit equal
to twenty-five percent of the first one thousand dollars
which the taxpayer has paid to others for each dependent, as
defined in the Internal Revenue Code, ages three through five
for early childhood development expenses. In determining the
amount of early childhood development expenses for the tax year
beginning in the 2006 calendar year only, such expenses paid
during November and December of the previous tax year shall
be considered paid in the tax year for which the tax credit
is claimed. This credit is available to a taxpayer whose net
income is less than forty-five ninety thousand dollars. If the
early childhood development tax credit is claimed for a tax
year, the taxpayer and the taxpayer’s spouse shall not claim
the child and dependent care credit under subsection 1.
Sec. 4. RETROACTIVE APPLICABILITY. This division of this
-1-Act applies retroactively to tax years beginning on or after
January 1, 2021.
DIVISION III
COVID-19 RELATED GRANTS — TAXATION
Sec. 5. Section 422.7, subsection 62, Code 2021, is amended
to read as follows:
62. a. Subtract, to the extent included, the amount of
any financial assistance qualifying COVID-19 grant provided to
an eligible small issued to an individual or business by the
economic development authority under the Iowa small business
relief grant program created during calendar year 2020 to
provide financial assistance to eligible small businesses
economically impacted by the COVID-19 pandemic, the Iowa
finance authority, or the department of agriculture and land
stewardship.
b. For purposes of this subsection, “qualifying COVID-19
grant” includes any grant that was issued between March 17,
2020, and December 31, 2021, identified by the department
by rule under a grant program created to primarily provide
COVID-19 related financial assistance to economically
impacted individuals and businesses located in this state,
and administered by the economic development authority, Iowa
finance authority, or the department of agriculture and land
stewardship.
c. The economic development authority, Iowa finance
authority, or the department of agriculture and land
stewardship shall notify the department of any COVID-19 grant
program that may qualify under this subsection in the manner
and form prescribed by the department.
d. This subsection is repealed January 1, 2024, and does not
apply to tax years beginning on or after that date.
Sec. 6. Section 422.35, subsection 30, Code 2021, is amended
to read as follows:
30. a. Subtract, to the extent included, the amount of
any financial assistance qualifying COVID-19 grant provided
-2-to an eligible small issued to a business by the economic
development authority under the Iowa small business relief
grant program created during calendar year 2020 to provide
financial assistance to eligible small businesses economically
impacted by the COVID-19 pandemic, the Iowa finance authority,
or the department of agriculture and land stewardship.
b. For purposes of this subsection, “qualifying COVID-19
grant” means the same as defined in section 422.7, subsection
62, paragraph “b”.
c. The economic development authority, Iowa finance
authority, or the department of agriculture and land
stewardship shall notify the department of any COVID-19 grant
program that may qualify under this subsection in the manner
and form prescribed by the department.
d. This subsection is repealed January 1, 2024, and does not
apply to tax years beginning on or after that date.
Sec. 7. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
Sec. 8. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to March 17, 2020, for tax years
ending on or after that date.
DIVISION IV
federal paycheck protection program
Sec. 9. FEDERAL PAYCHECK PROTECTION PROGRAM.
Notwithstanding any other provision of the law to the contrary,
for any tax year ending after March 27, 2020, Division N, Tit.
II, subtit.B, §276 and §278(a), of the federal Consolidated
Appropriations Act, 2021, Pub.L. No.116-260, applies in
computing net income for state tax purposes under section 422.7
or 422.35.
Sec. 10. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
DIVISION V
STATE INHERITANCE TAX
Sec. 11. Section 450.10, Code 2021, is amended by adding the
-3-following new subsection:
NEW SUBSECTION. 7. a. In lieu of each rate of tax imposed
in subsections 1 through 4, for property passing from the
estate of a decedent dying on or after January 1, 2021, but
before January 1, 2022, there shall be imposed a rate of tax
equal to the applicable tax rate in subsections 1 through
4, reduced by twenty percent, and rounded to the nearest
one-hundredth of one percent.
b. In lieu of each rate of tax imposed in subsections 1
through 4, for property passing from the estate of a decedent
dying on or after January 1, 2022, but before January 1, 2023,
there shall be imposed a rate of tax equal to the applicable
tax rate in subsections 1 through 4, reduced by forty percent,
and rounded to the nearest one-hundredth of one percent.
c. In lieu of each rate of tax imposed in subsections 1
through 4, for property passing from the estate of a decedent
dying on or after January 1, 2023, but before January 1, 2024,
there shall be imposed a rate of tax equal to the applicable
tax rate in subsections 1 through 4, reduced by sixty percent,
and rounded to the nearest one-hundredth of one percent.
d. In lieu of each rate of tax imposed in subsections 1
through 4, for property passing from the estate of a decedent
dying on or after January 1, 2024, but before January 1, 2025,
there shall be imposed a rate of tax equal to the applicable
tax rate in subsections 1 through 4, reduced by eighty percent,
and rounded to the nearest one-hundredth of one percent.
Sec. 12. NEW SECTION. 450.98 Tax repealed.
Effective January 1, 2025, this chapter shall not apply to
property of estates of decedents dying on or after January 1,
2025. The inheritance tax shall not be imposed under this
chapter in the event the decedent dies on or after January 1,
2025, and, to this extent, this chapter is repealed.
Sec. 13. NEW SECTION. 450B.8 Tax repealed.
Effective January 1, 2025, this chapter shall not apply to
property of estates of decedents dying on or after January 1,
-4-2025. The qualified use inheritance tax shall not be imposed
under this chapter in the event the decedent dies on or after
January 1, 2025, and, to this extent, this chapter is repealed.
Sec. 14. DEPARTMENT OF REVENUE. The department of revenue
is directed to review references to Code chapters 450 and 450B
and submit proposed corrections to such references in bill form
to the general assembly by the 2022 regular session of the
eighty-ninth general assembly.
Sec. 15. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
Sec. 16. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to the estates of decedents dying on
or after January 1, 2021.
DIVISION VI
housing trust fund
Sec. 17. Section 428A.8, subsection 3, Code 2021, is amended
to read as follows:
3. Notwithstanding subsection 2, the amount of money that
shall be transferred pursuant to this section to the housing
trust fund in any one fiscal year shall not exceed three seven
million dollars. Any money that otherwise would be transferred
pursuant to this section to the housing trust fund in excess
of that amount shall be deposited in the general fund of the
state.
DIVISION VII
HIGH QUALITY JOBS PROGRAM — DAY CARE CENTERS
Sec. 18. Section 15.327, Code 2021, is amended by adding the
following new subsection:
NEW SUBSECTION. 016. “Licensed center” means the same as
defined in section 237A.1.
Sec. 19. Section 15.329, Code 2021, is amended by adding the
following new subsection:
NEW SUBSECTION. 3A. In addition to the factors in
subsection 3, in determining the eligibility of a business to
participate in the program the authority may consider whether a
-5-proposed project will provide a licensed center for use by the
business’s employees.
DIVISION VIII
TELEHEALTH
Sec. 20. Section 514C.34, subsection 1, Code 2021, is
amended by adding the following new paragraphs:
NEW PARAGRAPH. 0a. “Covered person” means the same as
defined in section 514J.102.
NEW PARAGRAPH. 00a. “Facility” means the same as defined in
section 514J.102.
NEW PARAGRAPH. 0c. “Health carrier” means the same as
defined in section 514J.102.
Sec. 21. Section 514C.34, subsection 1, paragraph c, Code
2021, is amended to read as follows:
c. “Telehealth” means the delivery of health care services
through the use of real-time interactive audio and video, or
other real-time interactive electronic media, regardless of
where the health care professional and the covered person are
each located. “Telehealth” does not include the delivery of
health care services delivered solely through an audio-only
telephone, electronic mail message, or facsimile transmission.
Sec. 22. Section 514C.34, Code 2021, is amended by adding
the following new subsection:
NEW SUBSECTION. 3A. a. A health carrier shall reimburse
a health care professional and a facility for health care
services provided by telehealth to a covered person for a
mental health condition, illness, injury, or disease on the
same basis and at the same rate as the health carrier would
apply to the same health care services for a mental health
condition, illness, injury, or disease provided in person to a
covered person by the health care professional or the facility.
b. As a condition of reimbursement pursuant to paragraph
“a”, a health carrier shall not require that an additional
health care professional be located in the same room as a
covered person while health care services for a mental health
-6-condition, illness, injury, or disease are provided via
telehealth by another health care professional to the covered
person.
Sec. 23. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
Sec. 24. RETROACTIVE APPLICABILITY. This division of
this Act applies to health care services for a mental health
condition, illness, injury, or disease provided by a health
care professional or a facility to a covered person by
telehealth on or after January 1, 2021.
DIVISION IX
HIGH QUALITY JOBS and renewable chemical production tax credits
Sec. 25. Section 15.119, subsection 2, paragraph a,
subparagraphs (2) and (3), Code 2021, are amended to read as
follows:
(2) In allocating tax credits pursuant to this subsection
for each fiscal year of the fiscal period beginning July 1,
2016, and ending June 30, 2021 the fiscal year beginning July
1, 2021, and for each fiscal year thereafter, the authority
shall not allocate more than one hundred five seventy million
dollars for purposes of this paragraph. This subparagraph (2)
is repealed July 1, 2021.
(3) (a) In allocating tax credits pursuant to this
subsection for the fiscal year beginning July 1, 2021, and
ending June 30, 2022, the authority shall not allocate more
than one hundred five million dollars for purposes of this
paragraph if the aggregate amount of renewable chemical
production tax credits under section 15.319 that were awarded
on or after July 1, 2018, but before July 1, 2021, equals or
exceeds twenty-seven million dollars.
(b) As soon as practicable after June 30, 2021, the
authority shall notify the general assembly of the aggregate
amount of renewable chemical production tax credits awarded
under section 15.319 on or after July 1, 2018, but before
July 1, 2021, and whether or not the tax credit allocation
-7-limitation described in subparagraph division (a) is
applicable.
(c) This subparagraph (3) is repealed July 1, 2022.
Sec. 26. Section 15.119, subsection 2, paragraph h, Code
2021, is amended to read as follows:
h. The renewable chemical production tax credit program
administered pursuant to sections 15.315 through 15.322. In
allocating tax credits pursuant to this subsection for the
fiscal year beginning July 1, 2021, and for each fiscal year
thereafter, the authority shall not allocate more than ten five
million dollars for purposes of this paragraph. This paragraph
is repealed July 1, 2030.
Sec. 27. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
DIVISION X
HIGH QUALITY JOBS — ELIGIBILITY REQUIREMENTS
Sec. 28. HIGH QUALITY JOBS — REDUCTIONS IN OPERATIONS.
1. Notwithstanding section 15.329, subsection 1, paragraph
“b”, subparagraph (2), the economic development authority shall
not presume that a reduction in operations is a reduction in
operations while simultaneously applying for assistance with
regard to a business that submits an application on or before
June 30, 2022, if the business demonstrates to the satisfaction
of the authority all of the following:
a. That the reduction in operations occurred after March 1,
2020.
b. That the reduction in operations was caused by the
COVID-19 pandemic.
2. The economic development authority shall consider
whether the benefit of the project proposed by a business
under subsection 1 outweighs any negative impact related to
the business’s reduction in operations. The business shall
remain subject to all other eligibility requirements pursuant
to section 15.329.
3. This section is repealed July 1, 2022.
-8-DIVISION XI
Manufacturing 4.0
Sec. 29. NEW SECTION. 15.371 Manufacturing 4.0 technology
investment program.
1. This section shall be known as and may be cited as the
“Manufacturing 4.0 Technology Investment Program”.
2. For purposes of this section unless the context otherwise
requires:
a. “Financial assistance” means the same as defined in
section 15.102.
b. “Manufacturing 4.0 technology investments” means projects
that are intended to lead to the adoption of, and integration
of, smart technologies into existing manufacturing operations
located in the state by mitigating the risk to the manufacturer
of significant technology investments. Projects may include
investments in specialized hardware, software, or other
equipment intended to assist a manufacturer in increasing the
manufacturer’s productivity, efficiency, and competitiveness.
3. a. A manufacturing 4.0 technology investment fund
is created within the state treasury under the control of
the authority for the purpose of financing manufacturing 4.0
technology investments as described in this section.
b. The fund may be administered as a revolving fund and
may consist of any moneys appropriated by the general assembly
for purposes of this section and any other moneys that are
lawfully available to the authority. Any moneys appropriated
to the fund shall be used for purposes of the manufacturing
4.0 technology investment program. The authority may use all
other moneys in the fund, including interest, earnings, and
recaptures, for purposes of this section.
c. Notwithstanding section 8.33, moneys appropriated in this
section that remain unencumbered or unobligated at the close of
the fiscal year shall not revert but shall remain available for
expenditure for the purposes designated until the close of the
succeeding fiscal year.
-9- d. Notwithstanding any law to the contrary, the authority
may transfer any unobligated and unencumbered moneys in the
fund, except for moneys appropriated for purposes of this
section, to any fund created pursuant to section 15.106A,
subsection 1, paragraph “o”.
4. The authority shall establish and administer a
manufacturing 4.0 technology investment program and shall use
moneys in the fund to award financial assistance to eligible
manufacturers for manufacturing 4.0 technology investments.
5. To be eligible for a financial assistance award under the
manufacturing 4.0 technology investment program, a manufacturer
must do all of the following:
a. Manufacture goods at a facility located in this state.
b. Have a North American industry classification system
number within the manufacturing sector range of 31-33.
c. Have been an established business for a minimum of three
years prior to the date of application to the program.
d. Derive a minimum of fifty-one percent of the
manufacturer’s gross revenue from the sale of manufactured
goods.
e. Employ a minimum of three full-time employees and no
more than seventy-five full-time employees across all of the
manufacturer’s locations.
f. Have an assessment of the manufacturer’s proposed
manufacturing 4.0 technology investment completed by the center
for industrial research and service at Iowa state university of
science and technology.
g. Demonstrate the ability to provide matching financial
support for the manufacturer’s manufacturing 4.0 technology
investment on a one-to-one basis. The matching financial
support must be obtained from private sources.
6. Eligible manufacturers shall submit applications to the
manufacturing 4.0 technology investment program in the manner
prescribed by the authority by rule.
7. a. The authority may accept applications during one
-10-or more application periods each fiscal year as determined by
the authority. All completed applications shall be reviewed
and scored on a competitive basis pursuant to rules adopted by
the authority. The authority may engage an outside technical
review panel to complete technical reviews of applications.
The board shall review the recommendations of the authority
and of the technical review panel, if applicable, and shall
approve, defer, or deny each application.
b. In making recommendations to the board, the authority and
the technical review panel, if applicable, shall consider all
of the following:
(1) The completeness of the manufacturer’s application.
(2) Whether the board should approve or deny an application.
(3) If the board approves an application, the type and
amount of financial assistance that should to be awarded to the
applicant.
(4) The percentage of the manufacturer’s gross revenue
that is derived from the sale of manufactured goods pursuant
to subsection 5, paragraph “d”.
(5) Whether the manufacturer’s proposed manufacturing
4.0 technology investment is consistent with the assessment
completed by the center for industrial research and service at
Iowa state university of science and technology pursuant to
subsection 5, paragraph “f”.
c. The board shall not approve an application for financial
assistance for a manufacturing 4.0 technology investment that
was made prior to the date of the application.
8. From moneys appropriated to the manufacturing 4.0
technology investment fund from the general fund of the state
and any other state moneys lawfully available to the authority
for the manufacturing 4.0 technology investment program, the
maximum amount of financial assistance awarded from such moneys
to an eligible manufacturer shall not exceed seventy-five
thousand dollars.
9. The authority shall adopt rules pursuant to chapter 17A
-11-necessary to implement and administer this section.
DIVISION XII
ENERGY INFRASTRUCTURE REVOLVING LOAN PROGRAM
Sec. 30. Section 476.10A, subsection 2, Code 2021, is
amended to read as follows:
2. Notwithstanding section 8.33, any unexpended moneys
remitted to the treasurer of state under this section shall be
retained for the purposes designated. Notwithstanding section
12C.7, subsection 2, interest or earnings on investments or
time deposits of the moneys remitted under this section shall
be retained and used for the purposes designated, pursuant to
section 476.46.
Sec. 31. Section 476.46, subsection 2, paragraph e,
subparagraph (3), Code 2021, is amended to read as follows:
(3) Interest on the fund shall be deposited in the fund.
A portion of the interest on the fund, not to exceed fifty
percent of the total interest accrued, shall be used for
promotion and administration of the fund.
Sec. 32. Section 476.46, Code 2021, is amended by adding the
following new subsections:
NEW SUBSECTION. 3. The Iowa energy center shall not
initiate any new loans under this section after June 30, 2021.
NEW SUBSECTION. 4. Loan payments received under this
section on or after July 1, 2021, and any other moneys in the
fund on or after July 1, 2021, shall be deposited in the energy
infrastructure revolving loan fund created in section 476.46A.
Sec. 33. NEW SECTION. 476.46A Energy infrastructure
revolving loan program.
1. a. An energy infrastructure revolving loan fund is
created in the office of the treasurer of state and shall be
administered by the Iowa energy center established in section
15.120.
b. The fund may be administered as a revolving fund and may
consist of any moneys appropriated by the general assembly for
purposes of this section and any other moneys that are lawfully
-12-directed to the fund.
c. Moneys in the fund shall be used to provide financial
assistance for the development and construction of energy
infrastructure, including projects that support electric or gas
generation transmission, storage, or distribution; electric
grid modernization; energy-sector workforce development;
emergency preparedness for rural and underserved areas; the
expansion of biomass, biogas, and renewable natural gas;
innovative technologies; and the development of infrastructure
for alternative fuel vehicles.
d. Notwithstanding section 8.33, moneys appropriated in this
section that remain unencumbered or unobligated at the close of
the fiscal year shall not revert but shall remain available for
expenditure for the purposes designated until the close of the
succeeding fiscal year.
e. Notwithstanding section 12C.7, subsection 2, interest or
earnings on moneys in the fund shall be credited to the fund.
2. a. The Iowa energy center shall establish and administer
an energy infrastructure revolving loan program to encourage
the development of energy infrastructure within the state.
b. An individual, business, rural electric cooperative, or
municipal utility located and operating in this state shall be
eligible for financial assistance under the program. With the
approval of the Iowa energy center governing board established
under section 15.120, subsection 2, the economic development
authority shall determine the amount and the terms of all
financial assistance awarded to an individual, business, rural
electric cooperative, or municipal utility under the program.
All agreements and administrative authority sha11 be vested in
the Iowa energy center governing board.
c. The economic development authority may use not more than
five percent of the moneys in the fund at the beginning of each
fiscal year for purposes of administrative costs, marketing,
technical assistance, and other program support.
3. For the purposes of this section:
-13- a. “Energy infrastructure” means land, buildings, physical
plant and equipment, and services directly related to the
development of projects used for, or useful for, electricity or
gas generation, transmission, storage, or distribution.
b. “Financial assistance” means the same as defined in
section 15.102.
Sec. 34. ALTERNATE ENERGY REVOLVING LOAN FUND — MONEYS
TRANSFERRED AND APPROPRIATED. Any unencumbered or unobligated
moneys remaining after June 30, 2021, in the alternate energy
revolving loan fund created pursuant to section 476.46, are
transferred and appropriated to the energy infrastructure
revolving loan fund created pursuant to section 476.46A, to be
used for purposes of the energy infrastructure revolving loan
program.
DIVISION XIII
WORKFORCE HOUSING TAX INCENTIVES
Sec. 35. Section 15.119, subsection 2, paragraph g, Code
2021, is amended to read as follows:
g. (1) The workforce housing tax incentives program
administered pursuant to sections 15.351 through 15.356.
In allocating tax credits pursuant to this subsection, the
authority shall not allocate more than twenty-five thirty-five
million dollars for purposes of this paragraph. Of the moneys
allocated under this paragraph, ten seventeen million five
hundred thousand dollars shall be reserved for allocation to
qualified housing projects in small cities, as defined in
section 15.352, that are registered on or after July 1, 2017.
(2) (a) Notwithstanding subparagraph (1), in allocating
tax credits pursuant to this subsection for the fiscal year
beginning July 1, 2021, and ending June 30, 2022, the authority
shall not allocate more than forty million dollars for the
purposes of this paragraph. Of the moneys allocated under
this paragraph for the fiscal year beginning July 1, 2021, and
ending June 30, 2022, twelve million dollars shall be reserved
for allocation to qualified housing projects in small cities,
-14-as defined in section 15.352, that are registered on or after
July 1, 2017.
(b) This subparagraph is repealed July 1, 2022.
Sec. 36. Section 15.354, subsection 3, paragraph d, Code
2021, is amended to read as follows:
d. Upon completion of a housing project, an a housing
business shall submit all of the following to the authority:
(1) Anexamination of the project in accordance with the
American institute of certified public accountants’ statements
on standards for attestation engagements, completed by a
certified public accountant authorized to practice in this
state, shall be submitted to the authority.
(2) A statement of the final amount of qualifying new
investment for the housing project.
(3) Any information the authority deems necessary to ensure
compliance with the agreement signed by the housing business
pursuant to paragraph “a”, the requirements of this part,
and rules the authority and the department of revenue adopt
pursuant to section 15.356.
Sec. 37. Section 15.354, subsection 3, paragraph e,
subparagraph (1), Code 2021, is amended to read as follows:
(1) Upon review of the examination, and verification of
the amount of the qualifying new investment, and review of
any other information submitted pursuant to paragraph “d”,
subparagraph (3), the authority may notify the housing business
of the amount that the housing business may claim as a refund
of the sales and use tax under section 15.355, subsection 2,
and may issue a tax credit certificate to the housing business
stating the amount of workforce housing investment tax credits
under section 15.355, subsection 3, the eligible housing
business may claim. The sum of the amount that the housing
business may claim as a refund of the sales and use tax and
the amount of the tax credit certificate shall not exceed the
amount of the tax incentive award.
Sec. 38. Section 15.354, subsection 6, paragraphs b and c,
-15-Code 2021, are amended to read as follows:
b. Notwithstanding subsection 1, the authority may accept
applications for disaster recovery housing projects on a
continuous basis establish a disaster recovery application
period following the declaration of a major disaster by the
president of the United States for a county in Iowa.
c. Notwithstanding subsection 2, paragraphs “a”, “b”, and
“d”, upon Upon review of a housing business’s application,
and scoring of all applications received during a disaster
recovery application period, the authority may make a tax
incentive award to a disaster recovery housing project. The
tax incentive award shall represent the maximum amount of tax
incentives that the disaster recovery housing project may
qualify for under the program. In determining a tax incentive
award, the authority shall not use an amount of project costs
that exceeds the amount included in the application of the
housing business. Tax incentive awards shall be approved by
the director of the authority.
Sec. 39. Section 15.355, subsection 2, Code 2021, is amended
to read as follows:
2. A housing business may claim a refund of the sales and
use taxes paid under chapter 423 that are directly related to
a housing project and specified in the agreement. The refund
available pursuant to this subsection shall be as provided in
section 15.331A, excluding subsection 2, paragraph “c”, of
that section. For purposes of the program, the term “project
completion”, as used in section 15.331A, shall mean the date
on which the authority notifies the department of revenue that
all applicable requirements of an the agreement entered into
pursuant to section 15.354, subsection 3, paragraph “a”, and
all applicable requirements of this part, including the rules
the authority and the department of revenue adopted pursuant to
section 15.356, are satisfied.
DIVISION XIV
brownfields and grayfields
-16- Sec. 40. Section 15.119, subsection 3, Code 2021, is amended
to read as follows:
3. In allocating the amount of tax credits authorized
pursuant to subsection 1 among the programs specified in
subsection 2, the authority shall not allocate more than ten
fifteen million dollars for purposes of subsection 2, paragraph
“f”.
Sec. 41. Section 15.293A, subsection 8, Code 2021, is
amended to read as follows:
8. This section is repealed on June 30, 2021 2031.
Sec. 42. Section 15.293B, Code 2021, is amended by adding
the following new subsection:
NEW SUBSECTION. 5A. a. Tax credits revoked under
subsection 3 including tax credits revoked up to five years
prior to the effective date of this division of this Act, and
tax credits not awarded under subsection 4 or 5, may be awarded
in the next annual application period established in subsection
1, paragraph “c”.
b. Tax credits awarded pursuant to paragraph “a” shall not
be counted against the limit under section 15.119, subsection
3.
Sec. 43. Section 15.293B, subsection 7, Code 2021, is
amended to read as follows:
7. This section is repealed on June 30, 2021 2031.
Sec. 44. EFFECTIVE DATE. The following, being deemed of
immediate importance, take effect upon enactment:
1. The section of this division of this Act amending section
15.293A, subsection 8.
2. The section of this division of this Act amending section
15.293B, subsection 7.
DIVISION XV
Downtown loan guarantee program
Sec. 45. NEW SECTION. 15.431 Downtown loan guarantee
program.
1. The economic development authority, in partnership with
-17-the Iowa finance authority, shall establish and administer a
downtown loan guarantee program to encourage Iowa downtown
businesses and banks to reinvest and reopen following the
COVID-19 pandemic.
2. In order for a loan to be guaranteed, all of the
following conditions must be true:
a. The loan finances an eligible downtown resource center
community catalyst building remediation grant project or main
street Iowa challenge grant within a designated district.
b. The loan finances a rehabilitation project, or finances
acquisition or refinancing costs associated with the project.
c. At least twenty-five percent of the project costs are
used for construction on the project or renovation.
d. The project includes a housing component.
e. The loan is used for construction of the project,
permanent financing of the project, or both.
f. A federally insured financial lending institution issued
the loan.
g. The loan does not reimburse the borrower for working
capital, operations, or similar expenses.
h. The project meets downtown resource center and main
street Iowa design review.
3. a. For a loan amount less than or equal to five hundred
thousand dollars, the economic development authority may
guarantee up to fifty percent of the loan amount.
b. For a loan amount greater than five hundred thousand
dollars, the economic development authority may provide a
maximum loan guarantee of up to two hundred fifty thousand
dollars.
4. A project loan must be secured by a mortgage against the
project property.
5. The economic development authority may guarantee loans
for up to five years. The economic development authority
may extend the loan guarantee for an additional five years
if an underwriting review finds that an extension would be
-18-beneficial.
6. The lender shall pay an annual loan guarantee fee as set
forth by rule.
7. The economic development authority reserves the right
to deny a loan guarantee for unreasonable bank loan fees or
interest rate.
8. The loan must not be insured or guaranteed by another
local, state, or federal guarantee program.
9. The loan guarantee is not transferable if the loan or the
project is sold or transferred.
10. In the event of a loss due to default, the loan
guarantee proportionally pays the guarantee percentage of the
loss to the lender.
11. Moneys for the program may consist of any moneys
appropriated by the general assembly for purposes of this
section, and any other moneys that are lawfully available
to the economic development authority, including moneys
transferred or deposited from other funds created pursuant to
section 15.106A, subsection 1, paragraph “o”.
DIVISION XVI
Disaster recovery housing assistance
Sec. 46. NEW SECTION. 16.57A Transfer of unobligated or
unencumbered funds — report.
1. Notwithstanding any other provision of law to the
contrary, the authority may transfer any unobligated and
unencumbered moneys in any revolving loan program fund created
pursuant to section 16.46, 16.47, 16.48, or 16.49, for deposit
in the disaster recovery housing assistance fund created in
section 16.57B.
2. Notwithstanding section 8.39, and any other law to
the contrary, with the prior written consent and approval of
the governor, the executive director of the authority may
transfer any unobligated and unencumbered moneys in any fund
created pursuant to section 16.5, subsection 1, paragraph
“s”, for deposit in the disaster recovery housing assistance
-19-fund created in section 16.57B. The prior written consent and
approval of the director of the department of management shall
not be required to transfer the unobligated and unencumbered
moneys.
3. Notwithstanding section 8.39, and any other law to the
contrary, with the prior written approval of the governor, the
director of the economic development authority may transfer
any unobligated and unencumbered moneys in any fund created
pursuant to section 15.106A, subsection 1, paragraph “o”,
for deposit in the disaster recovery housing assistance fund
created in section 16.57B.
4. Any transfer made under this section shall be reported in
the same manner as provided in section 8.39, subsection 5.
Sec. 47. NEW SECTION. 16.57B Disaster recovery housing
assistance program — fund.
1. Definitions. As used in this section, unless the context
otherwise requires:
a. “Disaster-affected home” means a primary residence that
is destroyed or damaged due to a natural disaster that occurs
on or after the effective date of this division of this Act,
and the primary residence is located in a county that is the
subject of a state of disaster emergency proclamation by the
governor that authorizes disaster recovery housing assistance.
b. “Fund” means the disaster recovery housing assistance
fund.
c. “Local program administrator” means any of the following:
(1) The cities of Ames, Cedar Falls, Cedar Rapids, Council
Bluffs, Davenport, Des Moines, Dubuque, Iowa City, Waterloo,
and West Des Moines.
(2) A council of governments whose territory includes at
least one county that is the subject of a state of disaster
emergency proclamation by the governor that authorizes disaster
recovery housing assistance or the eviction prevention program
under section 16.57C on or after the effective date of this
division of this Act.
-20- (3) A community action agency as defined in section 216A.91
and whose territory includes at least one county that is the
subject of a state of disaster emergency proclamation by the
governor that authorizes disaster recovery housing assistance
or the eviction prevention program under section 16.57C on or
after the effective date of this division of this Act.
(4) A qualified local organization or governmental entity
as determined by rules adopted by the authority.
d. “Program” means the disaster recovery housing assistance
program.
e. “Replacement housing” means housing purchased
by a homeowner or leased by a renter needed to replace
a disaster-affected home that is destroyed or damaged
beyond reasonable repair as determined by a local program
administrator.
f. “State of disaster emergency” means the same as described
in section 29C.6, subsection 1.
2. Fund.
a. (1) A disaster recovery housing assistance fund is
created within the authority. The moneys in the fund shall be
used by the authority for the development and operation of a
forgivable loan and grant program for homeowners and renters
with disaster-affected homes, and for the eviction prevention
program pursuant to section 16.57C.
(2) Notwithstanding section 12C.7, subsection 2, interest
or earnings on moneys deposited in the fund shall be credited
to the fund. Notwithstanding section 8.33, moneys credited to
the fund shall not revert at the close of a fiscal year.
b. Moneys transferred by the authority for deposit in the
fund, moneys appropriated to the fund, and any other moneys
available to and obtained or accepted by the authority for
placement in the fund shall be deposited in the fund.
c. The authority shall not use more than five percent of
the moneys in the fund on July 1 of a fiscal year for purposes
of administrative costs and other program support during the
-21-fiscal year.
3. Program.
a. The authority shall establish and administer a disaster
recovery housing assistance program and shall use moneys in
the fund to award forgivable loans to eligible homeowners and
grants to eligible renters of disaster-affected homes. Moneys
in the fund may be expended following a state of disaster
emergency proclamation by the governor pursuant to section
29C.6 that authorizes disaster recovery housing assistance.
b. The authority may enter into an agreement with one or
more local program administrators to administer the program.
4. Registration required. To be considered for a forgivable
loan or grant under the program, a homeowner or renter must
register for the disaster case management program established
pursuant to section 29C.20B. The disaster case manager may
refer the homeowner or renter to the appropriate local program
administrator.
5. Homeowners.
a. To be eligible for a forgivable loan under the program,
all of the following requirements shall apply:
(1) The homeowner’s disaster-affected home must have
sustained damage greater than the damage that is covered by the
homeowner’s property and casualty insurance policy insuring the
home plus any other state or federal disaster-related financial
assistance that the homeowner is eligible to receive.
(2) A local official must either deem the disaster-affected
home suitable for rehabilitation or damaged beyond reasonable
repair.
(3) The disaster-affected home is not eligible for buyout by
the county or city where the disaster-affected home is located,
or the disaster-affected home is eligible for a buyout by the
county or city where the disaster-affected home is located, but
the homeowner is requesting a forgivable loan for the repair
or rehabilitation of the homeowner’s disaster-affected home in
lieu of a buyout.
-22- (4) Assistance under the program must not duplicate
benefits provided by any local, state, or federal disaster
recovery assistance program.
b. If a homeowner is referred to the authority or to a
local program administrator by the disaster case manager of the
homeowner, the authority may award a forgivable loan to the
eligible homeowner for any of the following purposes:
(1) Repair or rehabilitation of the disaster-affected home.
(2) (a) Down payment assistance on the purchase of
replacement housing, and the cost of reasonable repairs to be
performed on the replacement housing to render the replacement
housing decent, safe, sanitary, and in good repair.
(b) Replacement housing shall not be located in a
one-hundred-year floodplain.
(c) For purposes of this subparagraph, “decent, safe,
sanitary, and in good repair” means the same as described in 24
C.F.R.§5.703.
c. The authority shall determine the interest rate for the
forgivable loan.
d. If a homeowner who has been awarded a forgivable loan
sells a disaster-affected home or replacement housing for which
the homeowner received the forgivable loan prior to the end
of the loan term, the remaining principal on the forgivable
loan shall be due and payable pursuant to rules adopted by the
authority.
6. Renters.
a. To be eligible for a grant under the program, all of the
following requirements shall apply:
(1) A local program administrator either deems
the disaster-affected home of the renter suitable for
rehabilitation but unsuitable for current short-term
habitation, or the disaster-affected home is damaged beyond
reasonable repair.
(2) Assistance under the program must not duplicate
benefits provided by any local, state, or federal disaster
-23-recovery assistance program.
b. If a renter is referred to the authority or to a local
program administrator by the disaster case manager of the
renter, the authority may award a grant to the eligible renter
to provide short-term financial assistance for the payment of
rent for replacement housing.
7. Report. On or before January 31 of each year, the
authority shall submit a report to the general assembly
that identifies all of the following for the calendar year
immediately preceding the year of the report:
a. The date of each state of disaster emergency proclamation
by the governor that authorized disaster recovery housing
assistance under this section.
b. The total number of forgivable loans and grants awarded.
c. The total number of forgivable loans, and the amount of
each loan awarded for repair or rehabilitation.
d. The total number of forgivable loans, and the amount of
each loan, awarded for down payment assistance on the purchase
of replacement housing and the cost of reasonable repairs to be
performed on the replacement housing to render the replacement
housing decent, safe, sanitary, and in good repair.
e. The total number of grants, and the amount of each grant,
awarded for rental assistance.
f. The total number of forgivable loans and grants awarded
in each county in which at least one homeowner or renter has
been awarded a forgivable loan or grant.
g. Each local program administrator involved in the
administration of the program.
h. The total amount of forgivable loan principal repaid.
Sec. 48. NEW SECTION. 16.57C Eviction prevention program.
1. a. “Eligible renter” means a renter whose income meets
the qualifications of the program, who is at risk of eviction,
and who resides in a county that is the subject of a state of
disaster emergency proclamation by the governor that authorizes
the eviction prevention program.
-24- b. “Eviction prevention partner” means a qualified local
organization or governmental entity as determined by rule by
the authority.
2. The authority shall establish and administer an eviction
prevention program. Under the eviction prevention program,
the authority shall award grants to eligible renters and to
eviction prevention partners for purposes of this section.
Grants may be awarded upon a state of disaster emergency
proclamation by the governor that authorizes the eviction
prevention program. Eviction prevention assistance shall be
paid out of the fund established in section 16.57B.
3. a. Grants awarded to eligible renters pursuant to this
section shall be used for short-term financial rent assistance
to keep eligible renters in the current residences of such
renters.
b. Grants awarded to eviction prevention partners pursuant
to this section shall be used to pay for rent or services
provided to eligible renters for the purpose of preventing the
eviction of eligible renters.
4. The authority may enter into an agreement with one or
more local program administrators to administer the program.
Sec. 49. NEW SECTION. 16.57D Rules.
The authority shall adopt rules pursuant to chapter 17A to
implement and administer this part, including rules to do all
of the following:
1. Establish the maximum forgivable loan and grant amounts
awarded under the program.
2. Establish the terms of any forgivable loan provided under
the program.
3. Income qualifications of eligible renters in the
eviction prevention program.
Sec. 50. CODE EDITOR DIRECTIVE. The Code editor shall
designate sections 16.57A through 16.57D, as enacted by
this division of this Act, as a new part within chapter 16,
subchapter VIII, and may redesignate the new and preexisting
-25-parts, replace references to sections 16.57A through 16.57D
with references to the new part, and correct internal
references as necessary, including references in subchapter or
part headnotes.
Sec. 51. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
DIVISION XVII
BONUS DEPRECIATION
Sec. 52. Section 422.7, subsection 39A, Code 2021, is
amended by striking the subsection.
Sec. 53. Section 422.35, subsection 19A, Code 2021, is
amended by striking the subsection.
Sec. 54. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to January 1, 2021, for tax years
beginning on or after that date, and for qualified property
placed in service on or after that date.
DIVISION XVIII
BUSINESS INTEREST EXPENSE DEDUCTION
Sec. 55. Section 422.7, subsection 60, paragraph b, Code
2021, is amended by striking the paragraph.
Sec. 56. Section 422.35, subsection 27, paragraph b, Code
2021, is amended by striking the paragraph.
Sec. 57. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to January 1, 2021, for tax years
beginning on or after that date.
DIVISION XIX
BEGINNING FARMER TAX CREDIT
Sec. 58. Section 16.58, subsections 1, 2, and 3, Code 2021,
are amended to read as follows:
1. “Agricultural assets” means agricultural land,
agricultural improvements, depreciable agricultural property,
crops, or livestock.
2. “Agricultural improvements” improvement” means any
improvements, including buildings, structures, or fixtures
suitable for use in farming which are, if located on any size
-26-parcel of agricultural land.
3. “Agricultural land” means land suitable for use in
farming, any portion of which may include an agricultural
improvement.
Sec. 59. Section 16.77, subsection 2, Code 2021, is amended
to read as follows:
2. “Agricultural lease agreement” or “agreement” means an
agreement for the transfer of agricultural assets, that must at
least include a lease of agricultural land, from an eligible
taxpayer to a qualified beginning farmer as provided in section
16.79A.
Sec. 60. Section 16.79A, subsection 1, Code 2021, is amended
to read as follows:
1. a. A beginning farmer tax credit is allowed only for
agricultural assets that are subject to an agricultural lease
agreement entered into by an eligible taxpayer and a qualifying
beginning farmer participating in the beginning farmer tax
credit program established pursuant to section 16.78.
b. The tax credit is allowed regardless of whether the
principle agricultural asset is soil, pasture, or a building or
other structure used in farming.
Sec. 61. Section 16.79A, subsection 2, Code 2021, is amended
to read as follows:
2. The agreement must include the lease of agricultural
land located in this state, including any or agricultural
improvements located in this state, and may provide for the
rental of agricultural equipment as defined in section 322F.1.
Sec. 62. Section 16.79A, subsection 3, paragraph c, Code
2021, is amended to read as follows:
c. The agreement must be for at least two years, but not
more than five years. The agreement may be renewed any number
of times by the eligible taxpayer and qualified beginning
farmer for a term of at least two years, but not more than five
years. However, an eligible taxpayer shall not participate in
the program for more than fifteen years.
-27- Sec. 63. Section 16.81, subsection 4, Code 2021, is amended
by striking the subsection.
Sec. 64. Section 16.81, subsection 6, Code 2021, is amended
to read as follows:
6. The authority shall approve all beginning farmer tax
credit applications that meet the requirements of this subpart
and make tax credit awards on a first-come, first-served basis,
subject to the limitations in section 16.82A. An eligible
taxpayer may apply and be approved to enter into agreements
with different qualified beginning farmers.
Sec. 65. Section 16.82, subsection 5, Code 2021, is amended
to read as follows:
5. The amount of tax credits that may be awarded to an
eligible taxpayer for any one year under all agreements an
agreement shall not exceed fifty thousand dollars.
Sec. 66. BEGINNING FARMER TAX CREDIT PROGRAM — FORMER
PERIOD OF PARTICIPATION EXTENDED. An eligible taxpayer first
participating in the beginning farmer tax credit program on or
after January 1, 2019, as provided in 2019 Iowa Acts, chapter
161, for a tax year beginning on or after that date, may
participate in the program for not more than fifteen years in
the same manner as provided in section 16.79A, as amended by
this division of this Act.
Sec. 67. EFFECTIVE DATE. This division of this Act takes
effect January 1, 2022.
DIVISION XX
PROMOTIONAL PLAY
Sec. 68. Section 99F.1, subsections 1, 25, and 30, Code
2021, are amended to read as follows:
1. “Adjusted gross receipts” means the gross receipts on
gambling games less winnings paid to wagerers on gambling games
and less promotional play receipts on gambling games. However,
for each fiscal year during the time period beginning July 1,
2021, and ending June 30, 2026, “adjusted gross receipts” does
not shall include promotional play receipts received after the
-28-date in any fiscal year that the commission determines that
the wagering tax imposed pursuant to section 99F.11 on all
licensees in that fiscal year on promotional play receipts
exceeds twenty-five million eight hundred twenty thousand
dollars on gambling games.
25. “Promotional play receipts” means the total sums wagered
on gambling games with tokens, chips, electronic credits, or
other forms of cashless wagering provided by the licensee
without an exchange of money as described in section 99F.9,
subsection 3.
30. “Sports wagering net receipts” means the gross receipts
less winnings paid to wagerers and less promotional play
receipts on sports wagering.
Sec. 69. Section 99F.6, subsection 4, paragraph a,
subparagraphs (3) and (5), Code 2021, are amended to read as
follows:
(3) The commission shall authorize, subject to the debt
payments for horse racetracks and the provisions of paragraph
“b” for dog racetracks, a licensee who is also licensed to
conduct pari-mutuel dog or horse racing to use receipts
from gambling games and sports wagering within the racetrack
enclosure to supplement purses for races particularly for
Iowa-bred horses pursuant to an agreement which shall be
negotiated between the licensee and representatives of the
dog or horse owners. For agreements subject to commission
approval concerning purses for horse racing beginning on or
after January 1, 2006, the agreements shall provide that total
annual purses for all horse racing shall be four percent of
sports wagering net receipts and promotional play receipts on
sports wagering and no less than eleven percent of the first
two hundred million dollars of net receipts, and six percent of
net receipts above two hundred million dollars. In addition,
live standardbred horse racing shall not be conducted at the
horse racetrack in Polk county, but the purse moneys designated
for standardbred racing pursuant to section 99D.7, subsection
-29-5, paragraph “b”, shall be included in calculating the total
annual purses required to be paid pursuant to this subsection.
Agreements that are subject to commission approval concerning
horse purses for a period of time beginning on or after January
1, 2006, shall be jointly submitted to the commission for
approval.
(5) For purposes of this paragraph, “net receipts” means
the annual adjusted gross receipts from all gambling games
and, beginning July 1, 2026, promotional play receipts on all
gambling games less the annual amount of money pledged by the
owner of the facility to fund a project approved to receive
vision Iowa funds as of July 1, 2004.
Sec. 70. Section 99F.11, Code 2021, is amended by adding the
following new subsection:
NEW SUBSECTION. 2A. a. Notwithstanding any provision
of this section to the contrary, the tax rate imposed on a
licensee each fiscal year on any amount of promotional play
receipts on gambling games included as adjusted gross receipts
shall be determined by multiplying the adjusted percentage
by the wagering tax applicable to the licensee pursuant to
subsection 2.
b. For purposes of this subsection, “adjusted percentage”
means as follows:
(1) For the fiscal year beginning July 1, 2021, and ending
June 30, 2022, eighty-three and one-third percent.
(2) For the fiscal year beginning July 1, 2022, and ending
June 30, 2023, sixty-six and two-thirds percent.
(3) For the fiscal year beginning July 1, 2023, and ending
June 30, 2024, fifty percent.
(4) For the fiscal year beginning July 1, 2024, and ending
June 30, 2025, thirty-three and one-third percent.
(5) For the fiscal year beginning July 1, 2025, and ending
June 30, 2026, sixteen and two-thirds percent.
c. This subsection is repealed July 1, 2026.
DIVISION XXI
-30-TARGETED JOBS WITHHOLDING CREDIT
Sec. 71. Section 403.19A, subsection 3, paragraph c,
subparagraph (2), Code 2021, is amended to read as follows:
(2) The pilot project city and the economic development
authority shall not enter into a withholding agreement after
June 30, 2021 2024.
DIVISION XXII
FOOD BANKS
Sec. 72. Section 423.3, Code 2021, is amended by adding the
following new subsection:
NEW SUBSECTION. 107. The sales price of the sale or
rental of tangible personal property sold to and of services
furnished to a nonprofit food bank, if the property or
services are used by the nonprofit food bank for a charitable
purpose. For purposes of this subsection, “nonprofit food
bank” means an organization organized under chapter 504 and
qualifying under section 501(c)(3) of the Internal Revenue
Code as an organization exempt from federal income tax under
section 501(a) of the Internal Revenue Code that maintains
an established operation involving the provision of food or
edible commodities or the products thereof on a regular basis
to persons in need or to food pantries, soup kitchens, hunger
relief centers, or other food or feeding centers that, as an
integral part of their normal activities, provide meals or food
on a regular basis to persons in need.
DIVISION XXIII
emergency volunteer — tax credit
Sec. 73. Section 422.12, subsection 2, paragraph c,
subparagraph (1), Code 2021, is amended to read as follows:
(1) A volunteer fire fighter and volunteer emergency
medical services personnel member credit equal to one two
hundred fifty dollars to compensate the taxpayer for the
voluntary services if the volunteer served for the entire
tax year. A taxpayer who is a paid employee of an emergency
medical services program or a fire department and who is also
-31-a volunteer emergency medical services personnel member or
volunteer fire fighter in a city, county, or area governed
by an agreement pursuant to chapter 28E where the emergency
medical services program or fire department performs services,
shall qualify for the credit provided under this paragraph “c”.
Sec. 74. Section 422.12, subsection 2, paragraph d,
subparagraph (1), Code 2021, is amended to read as follows:
(1) A reserve peace officer credit equal to one two hundred
fifty dollars to compensate the taxpayer for services as a
reserve peace officer if the reserve peace officer served for
the entire tax year.
Sec. 75. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to January 1, 2021, for tax years
beginning on or after that date.
DIVISION XXIV
INDIVIDUAL INCOME TAX CHECKOFFS
Sec. 76. Section 173.22, subsection 2, Code 2021, is amended
to read as follows:
2. A foundation fund is created within the state treasury
composed of moneys appropriated or available to and obtained
or accepted by the foundation. The foundation fund shall also
include moneys credited transferred to the fund as provided in
section 422.12I.
Sec. 77. NEW SECTION. 422.12D Income tax checkoff for the
Iowa state fair foundation fund.
1. A person who files an individual or a joint income tax
return with the department of revenue under section 422.13
may designate one dollar or more to be paid to the foundation
fund of the Iowa state fair foundation as established in
section 173.22. If the refund due on the return or the payment
remitted with the return is insufficient to pay the amount
designated by the taxpayer to the foundation fund, the amount
designated shall be reduced to the remaining amount of the
refund or the remaining amount remitted with the return. The
designation of a contribution to the foundation fund under this
-32-section is irrevocable.
2. The director of revenue shall draft the income tax form
to allow the designation of contributions to the foundation
fund on the tax return. The department, on or before January
31, shall transfer the total amount designated on the tax
form due in the preceding year to the foundation fund.
However, before a checkoff pursuant to this section shall be
permitted, all liabilities on the books of the department of
administrative services and accounts identified as owing under
section 8A.504 shall be satisfied.
3. The Iowa state fair board may authorize payment from
the foundation fund for purposes of supporting foundation
activities.
4. The department of revenue may adopt rules to implement
this section.
5. This section is subject to repeal under section 422.12E.
Sec. 78. NEW SECTION. 422.12L Joint income tax checkoff for
veterans trust fund and volunteer fire fighter preparedness fund.
1. A person who files an individual or a joint income tax
return with the department of revenue under section 422.13 may
designate one dollar or more to be paid jointly to the veterans
trust fund created in section 35A.13 and to the volunteer fire
fighter preparedness fund created in section 100B.13. If the
refund due on the return or the payment remitted with the
return is insufficient to pay the additional amount designated
by the taxpayer, the amount designated shall be reduced to the
remaining amount of refund or the remaining amount remitted
with the return. The designation of a contribution under this
section is irrevocable.
2. The director of revenue shall draft the income tax form
to allow the designation of contributions to the veterans trust
fund and to the volunteer fire fighter preparedness fund as
one checkoff on the tax return. The department of revenue,
on or before January 31, shall transfer one-half of the total
amount designated on the tax return forms due in the preceding
-33-calendar year to the veterans trust fund and the remaining
one-half to the volunteer fire fighter preparedness fund.
However, before a checkoff pursuant to this section shall be
permitted, all liabilities on the books of the department of
administrative services and accounts identified as owing under
section 8A.504 shall be satisfied.
3. The department of revenue may adopt rules to administer
this section.
4. This section is subject to repeal under section 422.12E.
DIVISION XXV
MENTAL HEALTH FUNDING
Sec. 79. Section 123.38, subsection 2, paragraph b, Code
2021, is amended to read as follows:
b. For purposes of this subsection, any portion of license
or permit fees used for the purposes authorized in section
331.424, subsection 1, paragraph “a”, subparagraphs (1) and
(2), and in section 331.424A, shall not be deemed received
either by the division or by a local authority.
Sec. 80. Section 218.99, Code 2021, is amended to read as
follows:
218.99 Counties to be notified of patients’ personal
accounts.
The administrator in control of a state institution shall
direct the business manager of each institution under the
administrator’s jurisdiction which is mentioned in section
331.424, subsection 1, paragraph “a”, subparagraphs (1) and
(2), and for which services are paid under section 331.424A
by the county of residence or a mental health and disability
services region, to quarterly inform the county of residence
of any patient or resident who has an amount in excess of two
hundred dollars on account in the patients’ personal deposit
fund and the amount on deposit. The administrators shall
direct the business manager to further notify the county of
residence at least fifteen days before the release of funds in
excess of two hundred dollars or upon the death of the patient
-34-or resident. If the patient or resident has no residency in
this state or the person’s residency is unknown, notice shall
be made to the director of human services and the administrator
in control of the institution involved.
Sec. 81. Section 225.24, Code 2021, is amended to read as
follows:
225.24 Collection of preliminary expense.
Unless a committed private patient or those legally
responsible for the patient’s support offer to settle the
amount of the claims, the regional administrator for the
person’s county of residence shall collect, by action if
necessary, the amount of all claims for per diem and expenses
that have been approved by the regional administrator for the
county and paid by the regional administrator as provided under
section 225.21. Any amount collected shall be credited to the
county mental health and disabilities disability services fund
region combined account created in accordance with section
331.424A 331.391.
Sec. 82. Section 225C.4, subsection 1, paragraph i, Code
2021, is amended to read as follows:
i. Administer and distribute state appropriations in
connection with the mental health and disability services
regional services service fund established by section 225C.7A.
Sec. 83. Section 225C.7A, Code 2021, is amended by striking
the section and inserting in lieu thereof the following:
225C.7A Mental health and disability services regional
service fund — region incentive fund.
1. A mental health and disability services regional service
fund is created in the office of the treasurer of state under
the authority of the department. The fund shall be separate
from the general fund of the state and the balance in the fund
shall not be considered part of the balance of the general
fund of the state. Moneys in the fund include appropriations
made to the fund and other moneys deposited into the fund.
Moneys in the fund shall be used solely for purposes of making
-35-regional service payments and incentive payments under this
section.
2. a. For each fiscal year beginning on or after July 1,
2021, there is appropriated from the general fund of the state
to the mental health and disability services regional service
fund an amount necessary to make all regional service payments
under this section for that fiscal year.
b. The department shall distribute the moneys appropriated
from the mental health and disability services regional
service fund to mental health and disability services regions
for funding of services in accordance with performance-based
contracts with the regions and in the manner provided in this
section.
c. The performance-based contracts between the department
and each mental health and disability services region shall be
in effect beginning January 1, 2022, and shall include all of
the following:
(1) Authority for the department to approve, deny, or revise
each mental health and disability services region’s annual
service and budget plan under section 331.393.
(2) A requirement for the mental health and disability
services region to provide access to all core services under
section 331.397.
(3) A requirement that the mental health and disability
services region utilize all federal government funding,
including Medicaid funding, third-party payment sources, and
other nongovernmental funding prior to using regional service
payments received under this section.
(4) An annual review of the mental health and disability
services region’s administrative costs conducted by the
department.
(5) Authority for the department to establish outcome
improvement goals for populations served by the region
including but not limited to decreases in emergency department
visits, improved use of mobile crisis response and jail
-36-diversion programs, and improved employment-based outcomes.
(6) Provisions authorizing the department, in response to
a mental health and disability services region’s violation of
the contract, to implement the actions described under section
331.389, subsection 5, paragraph “a”.
3. For each fiscal year beginning on or after July 1, 2021,
the moneys available in a fiscal year in the mental health and
disability services regional service fund, except for moneys in
the region incentive fund under subsection 8, are appropriated
to the department and shall be distributed to each region on
a per capita basis calculated under subsection 4 using each
region’s population, as defined in section 331.388, for that
fiscal year.
4. The amount of each region’s regional service payment
shall be determined as follows:
a. For the fiscal year beginning July 1, 2021, an amount
equal to the product of fifteen dollars and eighty-six cents
multiplied by the sum of the region’s population for the fiscal
year.
b. For the fiscal year beginning July 1, 2022, an amount
equal to the product of thirty-eight dollars multiplied by the
sum of the region’s population for the fiscal year.
c. For the fiscal year beginning July 1, 2023, an amount
equal to the product of forty dollars multiplied by the sum of
the region’s population for the fiscal year.
d. For the fiscal year beginning July 1, 2024, an amount
equal to the product of forty-two dollars multiplied by the sum
of the region’s population for the fiscal year.
e. (1) For the fiscal year beginning July 1, 2025, and each
succeeding fiscal year, an amount equal to the product of the
sum of the region’s population for the fiscal year multiplied
by the sum of the dollar amount used to calculate the regional
service payments under this subsection for the immediately
preceding fiscal year plus the regional service growth factor
for the fiscal year.
-37- (2) For purposes of this paragraph, “regional service growth
factor” for a fiscal year is an amount equal to the product
of the dollar amount used to calculate the regional service
payments under this subsection for the immediately preceding
fiscal year multiplied by the percent increase, if any, in the
amount of sales tax revenue deposited into the general fund of
the state under section 423.2A, subsection 1, paragraph “a”,
less the transfers required under section 423.2A, subsection
2, between the fiscal year beginning three years prior to
the applicable fiscal year and the fiscal year beginning two
years prior to the applicable year, but not to exceed one and
one-half percent.
5. Regional service payments received by a region
shall be deposited in the region’s combined account under
section 331.391 and used solely for providing mental health
and disability services under the regional service system
management plan.
6. Regional service payments from the mental health
and disability services regional service fund shall be
paid in quarterly installments to the appropriate regional
administrator in July, October, January, and April of each
fiscal year.
7. a. For the fiscal year beginning July 1, 2021, each
mental health and disability services region for which the
amount certified during the fiscal year under section 331.391,
subsection 4, paragraph “b”, exceeds forty percent of the actual
expenditures of the region for the fiscal year preceding the
fiscal year in progress, the remaining quarterly payments of
the region’s regional service payment shall be reduced by
an amount equal to the amount by which the region’s amount
certified under section 331.391, subsection 4, paragraph “b”,
exceeds forty percent of the actual expenditures of the region
for the fiscal year preceding the fiscal year in progress, but
the amount of the reduction shall not exceed the total amount
of the region’s regional service payment for the fiscal year.
-38-If the region’s remaining quarterly payments are insufficient
to effectuate the required reductions under this paragraph, the
region is required to pay to the department of human services
any amount for which the reduction in quarterly payments could
not be made. The amount of reductions to quarterly payments
and amounts paid to the department under this paragraph shall
be transferred and credited to the region incentive fund under
subsection 8.
b. For the fiscal year beginning July 1, 2022, each mental
health and disability services region for which the amount
certified during the fiscal year under section 331.391,
subsection 4, paragraph “b”, exceeds twenty percent of the
actual expenditures of the region for the fiscal year preceding
the fiscal year in progress, the remaining quarterly payments
of the region’s regional service payment shall be reduced by
an amount equal to the amount by which the region’s amount
certified under section 331.391, subsection 4, paragraph “b”,
exceeds twenty percent of the actual expenditures of the region
for the fiscal year preceding the fiscal year in progress, but
the amount of the reduction shall not exceed the total amount
of the region’s regional service payment for the fiscal year.
If the region’s remaining quarterly payments are insufficient
to effectuate the required reductions under this paragraph, the
region is required to pay to the department of human services
any amount for which the reduction in quarterly payments could
not be made. The amount of reductions to quarterly payments
and amounts paid to the department under this paragraph shall
be transferred and credited to the region incentive fund under
subsection 8.
c. For the fiscal year beginning July 1, 2023, and each
succeeding fiscal year, each mental health and disability
services region for which the amount certified during the
fiscal year under section 331.391, subsection 4, paragraph “b”,
exceeds five percent of the actual expenditures of the region
for the fiscal year preceding the fiscal year in progress, the
-39-remaining quarterly payments of the region’s regional service
payment shall be reduced by an amount equal to the amount by
which the region’s amount certified under section 331.391,
subsection 4, paragraph “b”, exceeds five percent of the actual
expenditures of the region for the fiscal year preceding the
fiscal year in progress, but the amount of the reduction
shall not exceed the total amount of the region’s regional
service payment for the fiscal year. If the region’s remaining
quarterly payments are insufficient to effectuate the required
reductions under this paragraph, the region is required to
pay to the department of human services any amount for which
the reduction in quarterly payments could not be made. The
amount of reductions to quarterly payments and amounts paid to
the department under this paragraph shall be transferred and
credited to the region incentive fund under subsection 8.
8. a. A region incentive fund is created in the mental
health and disability services regional service fund under
subsection 1. The incentive fund shall consist of the
moneys appropriated or credited to the incentive fund by
law, including amounts credited to the incentive fund under
subsection 7. Notwithstanding section 8.33, moneys in the
incentive fund at the end of each fiscal year shall not revert
to any other fund but shall remain in the incentive fund for
use in subsequent fiscal years. For fiscal years beginning on
or after July 1, 2021, there is appropriated from the general
fund of the state to the incentive fund the following amounts
to be used for the purposes of this subsection:
(1) For the fiscal year beginning July 1, 2021, three
million dollars.
(2) (a) For each fiscal year beginning on or after July
1, 2025, an amount equal to the incentive fund growth factor
multiplied by the ending balance of the incentive fund at
the conclusion of the fiscal year ending June 30 immediately
preceding the application deadline under paragraph “b” for the
fiscal year for which the appropriation is made.
-40- (b) For purposes of this subparagraph, the “incentive fund
growth factor” for each fiscal year is the percent increase,
if any, in the amount of sales tax revenue deposited into the
general fund of the state under section 423.2A, subsection
1, paragraph “a”, less the transfers required under section
423.2A, subsection 2, between the fiscal year beginning three
years prior to the applicable fiscal year and the fiscal year
beginning two years prior to the applicable year, minus one and
one-half percent, and the incentive fund growth factor for any
fiscal year shall not exceed three and one-half percent.
b. To receive funding from the incentive fund, a regional
administrator must submit to the department sufficient data
to demonstrate that the region has met the standards outlined
in the region’s performance-based contract. The purpose of
the incentive fund shall be to provide appropriate financial
incentives for outcomes met from services provided by the
regional administrator’s mental health and disability services
region. The department shall make its final decisions on or
before December 15 regarding acceptance or rejection of the
submissions for incentive funds applications for assistance and
the total amount accepted shall be considered obligated.
c. In addition to incentive submission requirements under
paragraphs “d”, “e”, and “g”, basic eligibility for incentive
funds requires that a mental health and disability services
region meet all of the following conditions:
(1) The mental health and disability services region is in
compliance with the regional service system management plan
requirements of section 331.393.
(2) (a) In the fiscal year that commenced two years prior
to the fiscal year of application for incentive funds, the
ending balance, under generally accepted accounting principles,
of the mental health and disability services region’s combined
services funds was equal to or less than the ending balance
threshold under subparagraph division (b) for the fiscal year
for which assistance is requested.
-41- (b) For purposes of this subparagraph (2), “ending balance
threshold” means the following:
(i) For applications for the fiscal year beginning July 1,
2021, forty percent of the actual expenditures of the mental
health and disability services region for the fiscal year that
commenced two years prior to the fiscal year of application for
assistance.
(ii) For applications for the fiscal year beginning July 1,
2022, twenty percent of the actual expenditures of the mental
health and disability services region for the fiscal year that
commenced two years prior to the fiscal year of application for
assistance.
(iii) For applications for fiscal years beginning on or
after July 1, 2023, five percent of the actual expenditures
of the mental health and disability services region for the
fiscal year that commenced two years prior to the fiscal year
of application for assistance.
d. The department shall review the fiscal year-end financial
records for all mental health and disability services regions
that are granted incentive funds. If the department determines
a mental health and disability services region’s actual need
for incentive funds was less than the amount of incentive funds
granted to the mental health and disability services region,
the mental health and disability services region shall refund
the difference between the amount of assistance granted and
the actual need. The mental health and disability services
region shall submit the refund within thirty days of receiving
notice from the department. Refunds shall be credited to the
incentive fund.
e. The department shall determine application requirements
to ensure prudent use of the incentive fund. The department
may accept or reject an application for incentive funds in
whole or in part. The decision of the department is final.
f. The total amount of incentive funds approved shall be
limited to the amount available in the incentive fund for a
-42-fiscal year. Any unobligated balance in the incentive fund at
the close of a fiscal year shall remain in the incentive fund
for distribution in the succeeding fiscal year.
g. Incentive funds shall only be made available to address
one or more of the following circumstances:
(1) To reimburse regions for reductions in available
funding for core services as the result of the reduction and
elimination of the levy under section 331.424A, Code 2021, if
the region has an operating deficit. The department shall
prioritize approval of incentive funds for the circumstances
specified in this subparagraph.
(2) To incentivize quality core services that meet or exceed
the defined outcomes in the performance-based contract.
(3) To support regional efforts to fund non-core services
that support the defined outcomes of core services in the
performance-based contract.
(4) To support non-core services to maintain an individual
in a community setting or that would create a risk that the
individuals needing services and supports would be placed in
more restrictive, higher-cost settings.
h. Subject to the amount available and obligated from
the incentive fund for a fiscal year, the department shall
annually calculate the amount of moneys due to eligible mental
health and disability services regions in accordance with the
department’s decisions and that amount is appropriated from the
incentive fund to the department for payment of the moneys due.
The department shall distribute incentive funds payable to the
mental health and disability services regions for the amounts
due on or before January 1.
i. On or before March 1 and September 1 of each fiscal
year, the department shall provide the governor’s office and
the general assembly with a report of the financial condition
of the incentive fund. The report shall include but is not
limited to an itemization of the funding source’s balances,
types and amount of revenues credited, and payees and payment
-43-amounts for the expenditures made from the funding source
during the reporting period.
j. If the department has made its decisions but has
determined that there are otherwise qualifying requests for
incentive funds that are beyond the amount available in the
incentive fund for a fiscal year, the department shall compile
a list of such requests and the supporting information for
the requests. The list and information shall be submitted to
the commission, the children’s behavioral health system state
board, and the general assembly.
9. The commission shall consult with regional
administrators and the director in prescribing forms and
adopting rules to administer this section.
Sec. 84. Section 249N.8, subsection 1, Code 2021, is amended
to read as follows:
1. Biennially, a report of the results of a review, by
county and region, of mental health services previously funded
through taxes levied by counties pursuant to section 331.424A,
Code 2021, or funds administered by a mental health and
disability services region that are funded during the reporting
period under the Iowa health and wellness plan.
Sec. 85. Section 331.389, subsection 1, paragraph b, Code
2021, is amended to read as follows:
b. If a county has been exempted prior to July 1, 2014, from
the requirement to enter into a regional service system, the
county and the county’s board of supervisors shall fulfill all
requirements and be eligible as a region under this chapter and
chapter chapters 222, 225, 225C, 226, 227, 229, and 230 for a
regional service system, regional service system management
plan, regional governing board, and regional administrator,
and any other provisions applicable to a region of counties
providing local mental health and disability services.
Additionally, a county exempted under this subsection shall be
considered a region for purposes of chapter 426B.
Sec. 86. Section 331.389, subsection 5, paragraph a,
-44-subparagraph (2), Code 2021, is amended to read as follows:
(2) Reduce the amount of the annual state funding provided
for the regional service system or exempted county, including
amounts received under section 225C.7A, not to exceed fifteen
percent of the amount.
Sec. 87. Section 331.391, subsections 1 and 3, Code 2021,
are amended to read as follows:
1. The funding under the control of the governing board
shall be maintained in a combined account, in separate county
accounts that are under the control of the governing board, or
pursuant to other arrangements authorized by law that limit the
administrative burden of such control while facilitating public
scrutiny of financial processes. A county exempted under
section 331.389, subsection 1, shall maintain a county mental
health and disability services fund for the deposit of funding
received under section 225C.7A and appropriations specifically
authorized to be made from the county mental health and
disability services fund shall not be made from any other fund
of the county. A county mental health and disability services
fund established by an exempt county, to the extent feasible,
shall be considered to be the same as a region combined account
and shall be subject to the same requirements as a region’s
combined account.
3. The funding provided pursuant to appropriations from the
mental health and disability services regional services service
fund created in section 225C.7A and from performance-based
contracts with the department shall be credited to the account
or accounts under the control of the governing board.
Sec. 88. Section 331.391, subsection 4, paragraphs a, b, and
c, Code 2021, are amended to read as follows:
a. If a region is meeting the financial obligations for
implementation of its regional service system management plan
for a fiscal year and residual funding is anticipated, the
regional administrator shall may reserve an adequate amount of
unobligated and unencumbered funds for cash flow of expenditure
-45-obligations in the next fiscal year.
b. Each region shall certify to the department of management
human services on or before December 1, 2022 2021, and each
December 1 thereafter, the amount of the region’s cash flow
amount in the combined account that is attributable to each
county within the region based upon each county’s proportionate
amount of funding and contributions to the region or other
methodology specified in the regional governance agreement
or certify the cash flow amount for each separate county
account that is under the control of the governing board at the
conclusion of the most recently completed fiscal year.
c. For fiscal years beginning on or after July 1, 2023,
the region’s cash flow amount, either reserved in the region’s
combined account or reserved among all separate county accounts
under the control of the governing board, shall not exceed
forty five percent of the gross actual expenditures from the
combined account or from all separate county accounts under
control of the governing board for the fiscal year preceding
the fiscal year in progress.
Sec. 89. Section 331.392, subsection 4, paragraph a, Code
2021, is amended to read as follows:
a. Methods for pooling, management, and expenditure of the
funding under the control of the regional administrator. If
the agreement does not provide for pooling of the participating
county moneys in a single fund, the agreement shall specify how
the participating county moneys will be subject to the control
of the regional administrator.
Sec. 90. Section 331.393, subsection 10, Code 2021, is
amended to read as follows:
10. The director’s approval of a regional plan shall not be
construed to constitute certification of the respective county
budgets or of the region’s budget.
Sec. 91. Section 331.394, subsection 4, Code 2021, is
amended to read as follows:
4. If a county of residence is part of a mental health and
-46-disability services region that has agreed to pool funding and
liability for services, the The responsibilities of the county
under law regarding such mental health and disability services
shall be performed on behalf of the county by the regional
administrator. The county of residence or the county’s mental
health and disability services region, as applicable, is
responsible for paying the public costs of the mental health
and disability services that are not covered by the medical
assistance program under chapter 249A and are provided in
accordance with the region’s approved service management plan
to persons who are residents of the county or region.
Sec. 92. Section 331.398, subsection 1, Code 2021, is
amended to read as follows:
1. The financing of a regional mental health and disability
service system is limited to a fixed budget amount. The fixed
budget amount shall be the amount identified in a regional
service system management plan and budget for the fiscal year.
A region shall receive state funding for growth in non-Medicaid
expenditures through the mental health and disability regional
services fund created in section 225C.7A to address increased
service costs, additional service populations, additional core
service domains, and increased numbers of persons receiving
services.
Sec. 93. NEW SECTION. 331.400 Quarterly reports.
Beginning with the fiscal year, beginning July 1, 2022,
the department shall deliver on a quarterly basis a report to
the general assembly that provides a summary of the status of
implementing core services in each region, the accessibility
of core services in each region, how each region is using the
funding provided under section 225C.7A, and recommendations
for improvements to the mental health and disability services
system in order to attain the outcome improvement goals set
by the department consistent with the goals specified in the
performance-based contracts under section 225C.7A, subsection
2, paragraph “c”, subparagraph (5).
-47- Sec. 94. Section 331.424A, subsection 1, paragraph b, Code
2021, is amended by striking the paragraph.
Sec. 95. Section 331.424A, subsection 3, Code 2021, is
amended to read as follows:
3. a. County revenues from taxes and other sources
designated by a county for mental health and disabilities
services shall be credited to the county mental health and
disabilities services fund which shall be created by the
county. The Until the required transfer of funds under
paragraph “b”, the board shall make appropriations from the fund
for payment of services provided under the regional service
system management plan approved pursuant to section 331.393.
The For fiscal years beginning before July 1, 2022, the county
may pay for the services in cooperation with other counties
by pooling appropriations from the county services fund with
appropriations from the county services fund of other counties
through the county’s regional administrator, or through another
arrangement specified in the regional governance agreement
entered into by the county under section 331.392.
b. Notwithstanding section 331.432, subsection 3, upon
conclusion of the fiscal year beginning July 1, 2021, except
for an exempt county under section 331.391, subsection 1,
the county treasurer shall transfer the remaining balance of
the county’s county services fund created under paragraph
“a”, including all unobligated and unencumbered funds, to the
county’s region to which the county belongs in the fiscal year
beginning July 1, 2022, for deposit in the region’s combined
account under section 331.391.
Sec. 96. Section 331.424A, subsection 4, paragraph a, Code
2021, is amended to read as follows:
a. An amount of unobligated and unencumbered funds, as
specified in the regional governance agreement entered into
by the county under section 331.392, shall, for fiscal years
beginning before July 1, 2022, be reserved in the county
services fund to address cash flow obligations in the next
-48-fiscal year, subject to the limitations of this subsection.
Sec. 97. Section 331.424A, subsection 4, paragraphs c and d,
Code 2021, are amended by striking the paragraphs.
Sec. 98. Section 331.424A, subsections 5, 6, and 9, Code
2021, are amended to read as follows:
5. Receipts from the state or federal government for fiscal
years beginning before July 1, 2022, for the mental health
and disability services administered or paid for by a county
shall be credited to the county services fund, including moneys
distributed to the county from the department of human services
and moneys allocated under chapter 426B.
6. For each fiscal year beginning before July 1, 2022, the
county shall certify a levy for payment of services. For each
such fiscal year, county revenues from taxes imposed by the
county credited to the county services fund shall not exceed an
amount equal to the county budgeted amount for the fiscal year.
A levy certified under this section is not subject to the
appeal provisions of section 331.426or to any other provision
in law authorizing a county to exceed, increase, or appeal a
property tax levy limit.
9. a. For the fiscal year beginning July 1, 2017, and
each subsequent fiscal year beginning before July 1, 2022, the
county budgeted amount determined for each county shall be the
amount necessary to meet the county’s financial obligations for
the payment of services provided under the regional service
system management plan approved pursuant to section 331.393,
not to exceed an amount equal to the product of the regional
per capita expenditure target amount twenty-one dollars and
fourteen cents multiplied by the county’s population, and, for
fiscal years beginning on or after July 1, 2023, reduced by
the amount of the county’s cash flow reduction amount for the
fiscal year calculated under subsection 4, if applicable.
b. If a county officially joins a different region, the
county’s budgeted amount for a fiscal year beginning before
July 1, 2022, shall be the amount necessary to meet the
-49-county’s financial obligations for payment of services provided
under the new region’s regional service system management plan
approved pursuant to section 331.393, not to exceed an amount
equal to the product of the new region’s regional per capita
expenditure target amount twenty-one dollars and fourteen cents
multiplied by the county’s population, and, for fiscal years
beginning on or after July 1, 2023, reduced by the amount of
the county’s cash flow reduction amount for the fiscal year
calculated under subsection 4, if applicable.
Sec. 99. Section 331.424A, Code 2021, is amended by adding
the following new subsection:
NEW SUBSECTION. 10. This section is repealed July 1, 2022.
Sec. 100. Section 331.432, subsection 3, Code 2021, is
amended to read as follows:
3. a. Except as authorized in section 331.477, transfers
of moneys between the county services fund created pursuant
to section 331.424A and any other fund are prohibited. This
subsection paragraph does not apply to appropriations made or
the value of in-kind care and treatment provided pursuant to
section 347.7, subsection 1, paragraph “c”, Code 2021, or to
transfers from a county public hospital fund under section
347.7. This paragraph is repealed July 1, 2022.
b. Payments or transfers of moneys from any fund of the
county to a mental health and disability services region’s
combined account under section 331.391 are prohibited. This
paragraph applies to fiscal years beginning on or after July
1, 2022, but does not apply to transfers from a county public
hospital fund under section 347.7 for the fiscal year beginning
July 1, 2022, or the fiscal year beginning July 1, 2023.
Sec. 101. Section 347.7, subsection 1, paragraph c, Code
2021, is amended by striking the paragraph.
Sec. 102. Section 426B.1, subsection 2, Code 2021, is
amended to read as follows:
2. Moneys shall be distributed from the property tax relief
fund to counties for the mental health and disability regional
-50-service system for mental health and disabilities services, in
accordance with the appropriations made to the fund and other
statutory requirements.
Sec. 103. Section 426B.2, Code 2021, is amended to read as
follows:
426B.2 Property tax relief fund payments.
The director of human services shall draw warrants on the
property tax relief fund, payable to the county treasurer
regional administrator in the amount due to a county mental
health and disability services region in accordance with
statutory requirements, and mail the warrants to the county
auditors regional administrator in July and January of each
year.
Sec. 104. Section 426B.4, Code 2021, is amended to read as
follows:
426B.4 Rules.
The mental health and disability services commission shall
consult with county representatives regional administrators
and the director of human services in prescribing forms and
adopting rules pursuant to chapter 17A to administer this
chapter.
Sec. 105. ADJUSTMENT TO PROPERTY TAXES CERTIFIED UNDER
SECTION 331.424A — FY 2021-2022. For each county for which
the amount of taxes certified for levy for the purposes
of section 331.424A for the fiscal year beginning July 1,
2021, exceeds the product of the population of the county as
determined under section 331.424A, subsection 1, paragraph
“e”, multiplied by twenty-one dollars and fourteen cents,
the department of management shall reduce the amount of such
taxes certified for levy to an amount not to exceed the
product of the population of the county as determined under
section 331.424A, subsection 1, paragraph “e”, multiplied by
twenty-one dollars and fourteen cents and shall revise the rate
of taxation as necessary to raise the reduced amount. The
department of management shall report the reduction in the
-51-certified taxes and the revised rate of taxation to the county
auditors by June 15, 2021.
Sec. 106. IMPLEMENTATION OF REGION INCENTIVE FUND UNDER
SECTION 225C.7A — EMERGENCY RULEMAKING.
1. In order to timely implement the provisions of this
division of this Act establishing the region incentive fund
under section 225C.7A, subsection 8, for mental health and
disability services regions for funding the fiscal year
beginning July 1, 2021, and the fiscal year beginning July
1, 2022, the director of human services shall establish
alternative application deadlines and expedited application
review and approval timelines.
2. The department of human services may adopt
administrative rules under section 17A.4, subsection 3, and
section 17A.5, subsection 2, paragraph “b”, to implement
provisions of this division of this Act and the rules shall
become effective immediately upon filing or on a later
effective date specified in the rules, unless the effective
date of the rules is delayed or the applicability of the rules
is suspended by the administrative rules review committee. Any
rules adopted in accordance with this section shall not take
effect before the rules are reviewed by the administrative
rules review committee. The delay authority provided to
the administrative rules review committee under section
17A.8, subsections 9 and 10, shall be applicable to a delay
imposed under this section, notwithstanding a provision in
those subsections making them inapplicable to section 17A.5,
subsection 2, paragraph “b”. Any rules adopted in accordance
with the provisions of this section shall also be published as
a notice of intended action as provided in section 17A.4.
Sec. 107. DEPARTMENT OF HUMAN SERVICES — MENTAL HEALTH AND
DISABILITY REGIONS STUDY. The department of human services
shall convene a study committee to evaluate the current mental
health and disability region structure and operations in the
context of the changes made and the funding provided by this
-52-division of this Act. The study shall, at a minimum, review
how effectively each mental health and disability services
region has implemented the core services outlined in sections
331.397 and 331.397A, including the degree of uniformity of
the core services between the regions. The department shall
be authorized to contract with and retain the services of an
independent contractor in order to conduct the study. The
department shall submit a report detailing the study’s findings
and recommendations to the general assembly and the governor no
later than December 15, 2022.
Sec. 108. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
DIVISION XXVI
COMMERCIAL AND INDUSTRIAL PROPERTY TAX REPLACEMENT PAYMENTS
Sec. 109. Section 2.48, subsection 3, paragraph f,
subparagraph (6), Code 2021, is amended by striking the
subparagraph.
Sec. 110. Section 331.512, subsection 15, Code 2021, is
amended by striking the subsection.
Sec. 111. Section 331.559, subsection 27, Code 2021, is
amended by striking the subsection.
Sec. 112. Section 441.21A, subsection 1, paragraph a, Code
2021, is amended to read as follows:
a. For each fiscal year beginning on or after July 1, 2014,
but before July 1, 2029, there is appropriated from the general
fund of the state to the department of revenue an amount
necessary for the payment of all commercial and industrial
property tax replacement claims under this section for the
fiscal year. However, for a the fiscal year years beginning
on or after July 1, 2017, July 1, 2018, July 1, 2019, July 1,
2020, and July 1, 2021, the total amount of moneys appropriated
from the general fund of the state to the department of revenue
for the payment of commercial and industrial property tax
replacement claims in that each fiscal year shall not exceed
the total amount of money necessary to pay all commercial and
-53-industrial property tax replacement claims for the fiscal year
beginning July 1, 2016.
Sec. 113. Section 441.21A, subsections 2 and 3, Code 2021,
are amended to read as follows:
2. a. Beginning with the For each fiscal year beginning
on or after July 1, 2014, but before July 1, 2022, each county
treasurer shall be paid by the department of revenue an
amount equal to the amount of the commercial and industrial
property tax replacement claims in the county, as calculated
in subsection 4. If an amount appropriated for a the fiscal
year beginning on July 1, 2017, July 1, 2018, July 1, 2019,
July 1, 2020, or July 1, 2021, is insufficient to pay all
replacement claims for the fiscal year, the director of revenue
shall prorate the payment of replacement claims to the county
treasurers and shall notify the county auditors of the pro rata
percentage on or before September 30.
b. For each fiscal year beginning on or after July 1, 2022,
but before July 1, 2029, each county treasurer shall be paid
by the department of revenue an amount equal to the sum of the
commercial and industrial property tax replacement claims for
all taxing authorities, or portion thereof, located in the
county, as calculated in subsection 4A. The county treasurer
shall pay to each taxing authority the taxing authority’s
commercial and industrial property tax replacement claim, or
portion thereof, as calculated in subsection 4A.
3. a. On or before July 1 of each fiscal year beginning on
or after July 1, 2014, but before July 1, 2022, the assessor
shall report to the county auditor the total actual value of
all commercial property and industrial property in the county
that is subject to assessment and taxation for the assessment
year used to calculate the taxes due and payable in that fiscal
year.
b. On or before July 1, 2022, the department of management
shall calculate and report to the department of revenue for
each taxing authority in this state that is a city or a county
-54-all of the following:
(1) The total assessed value as of January 1, 2012, of
all taxable property located in the taxing authority that is
subject to assessment and taxation used to calculate taxes
which are due and payable in the fiscal year beginning July 1,
2013, excluding property subject to the statewide property tax
imposed under section 437A.18 or 437B.14.
(2) The total assessed value as of January 1, 2019, of
all taxable property located in the taxing authority that is
subject to assessment and taxation used to calculate taxes
which are due and payable in the fiscal year beginning July 1,
2020, excluding property subject to the statewide property tax
imposed under section 437A.18 or 437B.14.
Sec. 114. Section 441.21A, subsection 4, unnumbered
paragraph 1, Code 2021, is amended to read as follows:
On or before a date established by rule of the department
of revenue of each fiscal year beginning on or after July
1, 2014, but before July 1, 2022, the county auditor shall
prepare a statement, based upon the report received pursuant to
subsection 3, paragraph “a”, listing for each taxing district
in the county:
Sec. 115. Section 441.21A, Code 2021, is amended by adding
the following new subsection:
NEW SUBSECTION. 4A. a. As used in this subsection, unless
the context clearly requires otherwise:
(1) “Qualified taxing authority” means any of the following:
(a) A taxing authority that is not a city or a county.
(b) A taxing authority that is a city or county for which
the amount determined under subsection 3, paragraph “b”,
subparagraph (2), is less than one hundred thirty-one and
twenty-four hundredths percent of the amount determined under
subsection 3, paragraph “b”, subparagraph (1).
(2) “Taxing authority” means a city, county, community
college, or other governmental entity or political subdivision
in this state authorized to certify a levy on property located
-55-within such authority, but does not include a school district.
b. For fiscal years beginning on or after July 1, 2022,
but before July 1, 2029, the amount of each taxing authority’s
replacement claim is as follows:
(1) If the taxing authority is a qualified taxing authority:
(a) For the fiscal year beginning July 1, 2022,
seven-eighths of the amount received by the taxing authority
under this section for the fiscal year beginning July 1, 2021.
(b) For the fiscal year beginning July 1, 2023, six-eighths
of the amount received by the taxing authority under this
section for the fiscal year beginning July 1, 2021.
(c) For the fiscal year beginning July 1, 2024, five-eighths
of the amount received by the taxing authority under this
section for the fiscal year beginning July 1, 2021.
(d) For the fiscal year beginning July 1, 2025, four-eighths
of the amount received by the taxing authority under this
section for the fiscal year beginning July 1, 2021.
(e) For the fiscal year beginning July 1, 2026,
three-eighths of the amount received by the taxing authority
under this section for the fiscal year beginning July 1, 2021.
(f) For the fiscal year beginning July 1, 2027, two-eighths
of the amount received by the taxing authority under this
section for the fiscal year beginning July 1, 2021.
(g) For the fiscal year beginning July 1, 2028, one-eighth
of the amount received by the taxing authority under this
section for the fiscal year beginning July 1, 2021.
(2) If the taxing authority is not a qualified taxing
authority:
(a) For the fiscal year beginning July 1, 2022, four-fifths
of the amount received by the taxing authority under this
section for the fiscal year beginning July 1, 2021.
(b) For the fiscal year beginning July 1, 2023, three-fifths
of the amount received by the taxing authority under this
section for the fiscal year beginning July 1, 2021.
(c) For the fiscal year beginning July 1, 2024, two-fifths
-56-of the amount received by the taxing authority under this
section for the fiscal year beginning July 1, 2021.
(d) For the fiscal year beginning July 1, 2025, one-fifth of
the amount received by the taxing authority under this section
for the fiscal year beginning July 1, 2021.
(e) For the fiscal year beginning July 1, 2026, and each
succeeding fiscal year beginning before July 1, 2029, zero.
(3) The department of management shall calculate and report
to the department of revenue the amount received by each
taxing authority in this state as the result of commercial and
industrial property tax replacement claims paid for the fiscal
year beginning July 1, 2021, and the portion of the amount
attributable to each county where the taxing authority is
located, if applicable.
Sec. 116. Section 441.21A, subsection 5, Code 2021, is
amended to read as follows:
5. For purposes of computing replacement amounts under
this section for fiscal years beginning on or after July 1,
2014, but before July 1, 2022, that portion of an urban renewal
area defined as the sum of the assessed valuations defined in
section 403.19, subsections 1 and 2, shall be considered a
taxing district.
Sec. 117. Section 441.21A, subsection 6, paragraph a, Code
2021, is amended to read as follows:
a. The For fiscal years beginning on or after July 1, 2014,
but before July 1, 2022, the county auditor shall certify
and forward one copy of the statement to the department of
revenue not later than a date of each year established by the
department of revenue by rule.
Sec. 118. Section 441.21A, subsection 6, Code 2021, is
amended by adding the following new paragraph:
NEW PARAGRAPH. f. This subsection shall apply to the
apportionment of replacement claim amounts for fiscal years
beginning on or after July 1, 2014, but before July 1, 2022.
Sec. 119. Section 441.21A, Code 2021, is amended by adding
-57-the following new subsections:
NEW SUBSECTION. 7. a. For fiscal years beginning on
or after July 1, 2022, but before July 1, 2029, each taxing
authority’s replacement claim calculated under subsection 4A,
or portion thereof, shall be paid to the appropriate county
treasurer, as provided in subsection 2, paragraph “b”, in equal
installments in September and March of each year.
b. After payment by the county treasurer to the taxing
authority, the taxing authority’s replacement claim shall be
apportioned and credited by the governing body of the taxing
authority among the taxing authority’s tax levies in the same
proportion that each property tax levy bears to the total of
all property tax levies imposed by the taxing authority for the
fiscal year for which the payment is received.
c. Of the amounts allocated and credited to each property
tax levy that is subject to division under section 403.19,
the total amount paid into the fund for the taxing authority
as taxes by or for the taxing authority into which all other
property taxes are paid and the special fund of the applicable
municipality under section 403.19, subsection 2, shall be an
amount of the replacement claim that is proportionate to the
amount of the total sum of the assessed value of the taxable
commercial and industrial property in the urban renewal area as
a share of total assessed value of all taxable property in the
taxing authority and shall be apportioned as follows:
(1) To the fund for the taxing authority as taxes by or for
the taxing authority into which all other property taxes are
paid, an amount proportionate to the amount of actual value of
the commercial and industrial property in the urban renewal
area as determined in section 403.19, subsection 1, that was
subtracted pursuant to section 403.20, as it bears to the
total amount of actual value of the commercial and industrial
property in the urban renewal area that was subtracted pursuant
to section 403.20 for the assessment year for property taxes
due and payable in the fiscal year for which the replacement
-58-claim is computed.
(2) (a) To the special fund of the applicable municipality
under section 403.19, subsection 2, the remaining amount, if
any.
(b) The amount allocated under subparagraph division (a)
shall not exceed the amount equal to the amount certified to
the county auditor under section 403.19 for the fiscal year in
which the claim is paid, after deduction of the amount of other
revenues committed for payment on that amount for the fiscal
year. The amount not allocated as a result of the operation of
this subparagraph division (b) shall be allocated to and paid
into the fund for the taxing authority as taxes by or for the
taxing authority in the manner provided in subparagraph (1).
NEW SUBSECTION. 8. This section is repealed July 1, 2029.
Sec. 120. EFFECTIVE DATE. The following take effect July
1, 2029:
1. The section of this division of this Act amending section
331.512.
2. The section of this division of this Act amending section
331.559.
DIVISION XXVII
SCHOOL FOUNDATION PERCENTAGE
Sec. 121. Section 257.1, subsection 2, paragraph b, Code
2021, is amended to read as follows:
b. For the budget year commencing July 1, 1999, and for
each succeeding budget year beginning before July 1, 2022,
the regular program foundation base per pupil is eighty-seven
and five-tenths percent of the regular program state cost per
pupil. For the budget year commencing July 1, 2022, and for
each succeeding budget year, the regular program foundation
base per pupil is eighty-eight and four-tenths percent of the
regular program state cost per pupil. For the budget year
commencing July 1, 1991, and for each succeeding budget year
the special education support services foundation base is
seventy-nine percent of the special education support services
-59-state cost per pupil. The combined foundation base is the sum
of the regular program foundation base, the special education
support services foundation base, the total teacher salary
supplement district cost, the total professional development
supplement district cost, the total early intervention
supplement district cost, the total teacher leadership
supplement district cost, the total area education agency
teacher salary supplement district cost, and the total area
education agency professional development supplement district
cost.
Sec. 122. Section 257.3, subsection 1, paragraph d, Code
2021, is amended by striking the paragraph.
Sec. 123. EFFECTIVE DATE. The section of this division of
this Act amending section 257.3, subsection 1, paragraph “d”,
takes effect July 1, 2022.
DIVISION XXVIII
ELDERLY PROPERTY TAX CREDIT
Sec. 124. Section 25B.7, subsection 2, paragraph b, Code
2021, is amended to read as follows:
b. Low-income property tax credit and elderly and disabled
property tax credit pursuant to sections 425.16 through 425.40,
subject to the limitation of section 425.39, subsection 1,
paragraph “b”.
Sec. 125. Section 425.17, subsection 2, Code 2021, is
amended to read as follows:
2. a. “Claimant” means either any of the following:
(1) A person filing a claim for credit or reimbursement
under this subchapter who has attained the age of sixty-five
years but who has not attained the age of seventy years on
or before December 31 of the base year or, a person filing a
claim for credit or reimbursement under this subchapter who
is totally disabled and was totally disabled on or before
December 31 of the base year, or a person filing a claim for
reimbursement under this subchapter who has attained the age of
sixty-five years on or before December 31 of the base year and
-60- who is domiciled in this state at the time the claim is filed or
at the time of the person’s death in the case of a claim filed
by the executor or administrator of the claimant’s estate.
(2) A person filing a claim for credit or reimbursement
under this subchapter who has attained the age of twenty-three
years on or before December 31 of the base year or was a head
of household on December 31 of the base year, as defined in
the Internal Revenue Code, but has not attained the age or
disability status described in this paragraph “a”, subparagraph
(1) or the age status and eligibility criteria of subparagraph
(3), and is domiciled in this state at the time the claim is
filed or at the time of the person’s death in the case of a
claim filed by the executor or administrator of the claimant’s
estate, and was not claimed as a dependent on any other
person’s tax return for the base year.
(3) A person filing a claim for credit under this subchapter
who has attained the age of seventy years on or before December
31 of the base year, who has a household income of less than
two hundred fifty percent of the federal poverty level, as
defined by the most recently revised poverty income guidelines
published by the United States department of health and human
services, and is domiciled in this state at the time the claim
is filed or at the time of the person’s death in the case of a
claim filed by the executor or administrator of the claimant’s
estate.
b. “Claimant” under paragraph “a”, subparagraph (1) or(2),
includes a vendee in possession under a contract for deed and
may include one or more joint tenants or tenants in common.
In the case of a claim for rent constituting property taxes
paid, the claimant shall have rented the property during any
part of the base year. In the case of a claim for property
taxes due, the claimant shall have occupied the property during
any part of the fiscal year beginning July 1 of the base year.
If a homestead is occupied by two or more persons, and more
than one person is able to qualify as a claimant, the persons
-61-may each file a claim based upon each person’s income and rent
constituting property taxes paid or property taxes due.
Sec. 126. Section 425.23, subsection 1, paragraph a,
unnumbered paragraph 1, Code 2021, is amended to read as
follows:
The tentative credit or reimbursement for a claimant
described in section 425.17, subsection 2, paragraph “a”,
subparagraphs subparagraph (1) and (2), if no appropriation is
made to the fund created in section 425.40 shall be determined
in accordance with the following schedule:
Sec. 127. Section 425.23, subsection 1, Code 2021, is
amended by adding the following new paragraph:
NEW PARAGRAPH. c. The tentative credit for a claimant
described in section 425.17, subsection 2, paragraph “a”,
subparagraph (3), shall be the greater of the following:
(1) The amount of the credit under the schedule specified
in paragraph “a” of this subsection as if the claimant was a
claimant as defined in section 425.17, subsection 2, paragraph
“a”, subparagraph (1), filing for a credit under paragraph “a”
of this subsection.
(2) The difference between the actual amount of property
taxes due on the homestead during the fiscal year next
following the base year minus the actual amount of property
taxes due on the homestead during the first fiscal year for
which the claimant filed a claim for a credit calculated under
this paragraph “c” and for which the property taxes due on the
homestead were calculated on an assessed valuation that was
not a partial assessment and if the claimant has filed for the
credit calculated under this paragraph “c” for each of the
subsequent fiscal years after the first credit claimed.
Sec. 128. Section 425.23, subsection 4, paragraph a, Code
2021, is amended to read as follows:
a. For the base year beginning in the 1999 calendar year
and for each subsequent base year, the dollar amounts set
forth in subsections subsection 1, paragraphs “a” and “b”, and
-62- subsection 3 shall be multiplied by the cumulative adjustment
factor for that base year. “Cumulative adjustment factor” means
the product of the annual adjustment factor for the 1998 base
year and all annual adjustment factors for subsequent base
years. The cumulative adjustment factor applies to the base
year beginning in the calendar year for which the latest annual
adjustment factor has been determined.
Sec. 129. Section 425.24, Code 2021, is amended to read as
follows:
425.24 Maximum property tax for purpose of credit or
reimbursement.
In For claimants under section 425.17, subsection 2,
paragraph “a”, subparagraphs (1) and (2), and for the
calculation under section 425.23, subsection 1, paragraph “c”,
subparagraph (1), in any case in which property taxes due or
rent constituting property taxes paid for any household exceeds
one thousand dollars, the amount of property taxes due or rent
constituting property taxes paid shall be deemed to have been
one thousand dollars for purposes of this subchapter.
Sec. 130. Section 425.39, subsection 1, as amended by 2021
Iowa Acts, House File 368, section 33, is amended to read as
follows:
1. a. The elderly and disabled property tax credit fund is
created. There is appropriated annually from the general fund
of the state to the department of revenue to be credited to the
elderly and disabled property tax credit fund, from funds not
otherwise appropriated, an amount sufficient to implement this
subchapter for credits for property taxes due for claimants
described in section 425.17, subsection 2, paragraph “a”,
subparagraph subparagraphs (1) and (3), subject to paragraph
“b”.
b. Regardless of the amount of the credit determined under
section 425.23, subsection 1, paragraph “c”, the amount paid by
the director of revenue to each county treasurer for credits
for claimants described under section 425.17, subsection 2,
-63-paragraph “a”, subparagraph (3), shall not exceed the amount
calculated for the claimant under section 425.23, subsection 1,
paragraph “c”, subparagraph (1), and section 25B.7, subsection
1, shall not apply to the amount of the credit in excess of the
amount paid by the director of revenue.
Sec. 131. APPLICABILITY. This division of this Act applies
to claims under chapter 425, subchapter II, filed on or after
January 1, 2022.
-64-______________________________
JAKE CHAPMANPresident of the Senate______________________________
PAT GRASSLEYSpeaker of the House I hereby certify that this bill originated in the Senate and is known as Senate File 619, Eighty-ninth General Assembly.______________________________
W. CHARLES SMITHSONSecretary of the SenateApproved _______________, 2021______________________________
KIM REYNOLDSGovernorjm/jh/mb/mb
modifying future tax contingencies, the state inheritance
tax, the sales and use tax relating to food banks, the tax
on promotional play receipts, mental health and disability
services funding, school district funding, commercial and
industrial property tax replacement payments, providing
for housing incentives, providing for other properly
related matters, making appropriations, and including
effective date, applicability, and retroactive applicability
provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
DIVISION I
FUTURE TAX Contingencies
Section 1. 2018 Iowa Acts, chapter 1161, section 133, is
amended by striking the section and inserting in lieu thereof
the following:
SEC. 133. EFFECTIVE DATE. This division of this Act takes
effect January 1, 2023.
DIVISION II
child dependent and development tax credits
Sec. 2. Section 422.12C, subsection 1, paragraphs f and g,
Code 2021, are amended to read as follows:
f. For a taxpayer with net income of forty thousand dollars
or more but less than forty-five ninety thousand dollars,
thirty percent.
g. For a taxpayer with net income of forty-five ninety
thousand dollars or more, zero percent.
Sec. 3. Section 422.12C, subsection 2, paragraph a, Code
2021, is amended to read as follows:
a. The taxes imposed under this subchapter, less the amounts
of nonrefundable credits allowed under this subchapter, may
be reduced by an early childhood development tax credit equal
to twenty-five percent of the first one thousand dollars
which the taxpayer has paid to others for each dependent, as
defined in the Internal Revenue Code, ages three through five
for early childhood development expenses. In determining the
amount of early childhood development expenses for the tax year
beginning in the 2006 calendar year only, such expenses paid
during November and December of the previous tax year shall
be considered paid in the tax year for which the tax credit
is claimed. This credit is available to a taxpayer whose net
income is less than forty-five ninety thousand dollars. If the
early childhood development tax credit is claimed for a tax
year, the taxpayer and the taxpayer’s spouse shall not claim
the child and dependent care credit under subsection 1.
Sec. 4. RETROACTIVE APPLICABILITY. This division of this
-1-Act applies retroactively to tax years beginning on or after
January 1, 2021.
DIVISION III
COVID-19 RELATED GRANTS — TAXATION
Sec. 5. Section 422.7, subsection 62, Code 2021, is amended
to read as follows:
62. a. Subtract, to the extent included, the amount of
any financial assistance qualifying COVID-19 grant provided to
an eligible small issued to an individual or business by the
economic development authority under the Iowa small business
relief grant program created during calendar year 2020 to
provide financial assistance to eligible small businesses
economically impacted by the COVID-19 pandemic, the Iowa
finance authority, or the department of agriculture and land
stewardship.
b. For purposes of this subsection, “qualifying COVID-19
grant” includes any grant that was issued between March 17,
2020, and December 31, 2021, identified by the department
by rule under a grant program created to primarily provide
COVID-19 related financial assistance to economically
impacted individuals and businesses located in this state,
and administered by the economic development authority, Iowa
finance authority, or the department of agriculture and land
stewardship.
c. The economic development authority, Iowa finance
authority, or the department of agriculture and land
stewardship shall notify the department of any COVID-19 grant
program that may qualify under this subsection in the manner
and form prescribed by the department.
d. This subsection is repealed January 1, 2024, and does not
apply to tax years beginning on or after that date.
Sec. 6. Section 422.35, subsection 30, Code 2021, is amended
to read as follows:
30. a. Subtract, to the extent included, the amount of
any financial assistance qualifying COVID-19 grant provided
-2-to an eligible small issued to a business by the economic
development authority under the Iowa small business relief
grant program created during calendar year 2020 to provide
financial assistance to eligible small businesses economically
impacted by the COVID-19 pandemic, the Iowa finance authority,
or the department of agriculture and land stewardship.
b. For purposes of this subsection, “qualifying COVID-19
grant” means the same as defined in section 422.7, subsection
62, paragraph “b”.
c. The economic development authority, Iowa finance
authority, or the department of agriculture and land
stewardship shall notify the department of any COVID-19 grant
program that may qualify under this subsection in the manner
and form prescribed by the department.
d. This subsection is repealed January 1, 2024, and does not
apply to tax years beginning on or after that date.
Sec. 7. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
Sec. 8. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to March 17, 2020, for tax years
ending on or after that date.
DIVISION IV
federal paycheck protection program
Sec. 9. FEDERAL PAYCHECK PROTECTION PROGRAM.
Notwithstanding any other provision of the law to the contrary,
for any tax year ending after March 27, 2020, Division N, Tit.
II, subtit.B, §276 and §278(a), of the federal Consolidated
Appropriations Act, 2021, Pub.L. No.116-260, applies in
computing net income for state tax purposes under section 422.7
or 422.35.
Sec. 10. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
DIVISION V
STATE INHERITANCE TAX
Sec. 11. Section 450.10, Code 2021, is amended by adding the
-3-following new subsection:
NEW SUBSECTION. 7. a. In lieu of each rate of tax imposed
in subsections 1 through 4, for property passing from the
estate of a decedent dying on or after January 1, 2021, but
before January 1, 2022, there shall be imposed a rate of tax
equal to the applicable tax rate in subsections 1 through
4, reduced by twenty percent, and rounded to the nearest
one-hundredth of one percent.
b. In lieu of each rate of tax imposed in subsections 1
through 4, for property passing from the estate of a decedent
dying on or after January 1, 2022, but before January 1, 2023,
there shall be imposed a rate of tax equal to the applicable
tax rate in subsections 1 through 4, reduced by forty percent,
and rounded to the nearest one-hundredth of one percent.
c. In lieu of each rate of tax imposed in subsections 1
through 4, for property passing from the estate of a decedent
dying on or after January 1, 2023, but before January 1, 2024,
there shall be imposed a rate of tax equal to the applicable
tax rate in subsections 1 through 4, reduced by sixty percent,
and rounded to the nearest one-hundredth of one percent.
d. In lieu of each rate of tax imposed in subsections 1
through 4, for property passing from the estate of a decedent
dying on or after January 1, 2024, but before January 1, 2025,
there shall be imposed a rate of tax equal to the applicable
tax rate in subsections 1 through 4, reduced by eighty percent,
and rounded to the nearest one-hundredth of one percent.
Sec. 12. NEW SECTION. 450.98 Tax repealed.
Effective January 1, 2025, this chapter shall not apply to
property of estates of decedents dying on or after January 1,
2025. The inheritance tax shall not be imposed under this
chapter in the event the decedent dies on or after January 1,
2025, and, to this extent, this chapter is repealed.
Sec. 13. NEW SECTION. 450B.8 Tax repealed.
Effective January 1, 2025, this chapter shall not apply to
property of estates of decedents dying on or after January 1,
-4-2025. The qualified use inheritance tax shall not be imposed
under this chapter in the event the decedent dies on or after
January 1, 2025, and, to this extent, this chapter is repealed.
Sec. 14. DEPARTMENT OF REVENUE. The department of revenue
is directed to review references to Code chapters 450 and 450B
and submit proposed corrections to such references in bill form
to the general assembly by the 2022 regular session of the
eighty-ninth general assembly.
Sec. 15. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
Sec. 16. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to the estates of decedents dying on
or after January 1, 2021.
DIVISION VI
housing trust fund
Sec. 17. Section 428A.8, subsection 3, Code 2021, is amended
to read as follows:
3. Notwithstanding subsection 2, the amount of money that
shall be transferred pursuant to this section to the housing
trust fund in any one fiscal year shall not exceed three seven
million dollars. Any money that otherwise would be transferred
pursuant to this section to the housing trust fund in excess
of that amount shall be deposited in the general fund of the
state.
DIVISION VII
HIGH QUALITY JOBS PROGRAM — DAY CARE CENTERS
Sec. 18. Section 15.327, Code 2021, is amended by adding the
following new subsection:
NEW SUBSECTION. 016. “Licensed center” means the same as
defined in section 237A.1.
Sec. 19. Section 15.329, Code 2021, is amended by adding the
following new subsection:
NEW SUBSECTION. 3A. In addition to the factors in
subsection 3, in determining the eligibility of a business to
participate in the program the authority may consider whether a
-5-proposed project will provide a licensed center for use by the
business’s employees.
DIVISION VIII
TELEHEALTH
Sec. 20. Section 514C.34, subsection 1, Code 2021, is
amended by adding the following new paragraphs:
NEW PARAGRAPH. 0a. “Covered person” means the same as
defined in section 514J.102.
NEW PARAGRAPH. 00a. “Facility” means the same as defined in
section 514J.102.
NEW PARAGRAPH. 0c. “Health carrier” means the same as
defined in section 514J.102.
Sec. 21. Section 514C.34, subsection 1, paragraph c, Code
2021, is amended to read as follows:
c. “Telehealth” means the delivery of health care services
through the use of real-time interactive audio and video, or
other real-time interactive electronic media, regardless of
where the health care professional and the covered person are
each located. “Telehealth” does not include the delivery of
health care services delivered solely through an audio-only
telephone, electronic mail message, or facsimile transmission.
Sec. 22. Section 514C.34, Code 2021, is amended by adding
the following new subsection:
NEW SUBSECTION. 3A. a. A health carrier shall reimburse
a health care professional and a facility for health care
services provided by telehealth to a covered person for a
mental health condition, illness, injury, or disease on the
same basis and at the same rate as the health carrier would
apply to the same health care services for a mental health
condition, illness, injury, or disease provided in person to a
covered person by the health care professional or the facility.
b. As a condition of reimbursement pursuant to paragraph
“a”, a health carrier shall not require that an additional
health care professional be located in the same room as a
covered person while health care services for a mental health
-6-condition, illness, injury, or disease are provided via
telehealth by another health care professional to the covered
person.
Sec. 23. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
Sec. 24. RETROACTIVE APPLICABILITY. This division of
this Act applies to health care services for a mental health
condition, illness, injury, or disease provided by a health
care professional or a facility to a covered person by
telehealth on or after January 1, 2021.
DIVISION IX
HIGH QUALITY JOBS and renewable chemical production tax credits
Sec. 25. Section 15.119, subsection 2, paragraph a,
subparagraphs (2) and (3), Code 2021, are amended to read as
follows:
(2) In allocating tax credits pursuant to this subsection
for each fiscal year of the fiscal period beginning July 1,
2016, and ending June 30, 2021 the fiscal year beginning July
1, 2021, and for each fiscal year thereafter, the authority
shall not allocate more than one hundred five seventy million
dollars for purposes of this paragraph. This subparagraph (2)
is repealed July 1, 2021.
(3) (a) In allocating tax credits pursuant to this
subsection for the fiscal year beginning July 1, 2021, and
ending June 30, 2022, the authority shall not allocate more
than one hundred five million dollars for purposes of this
paragraph if the aggregate amount of renewable chemical
production tax credits under section 15.319 that were awarded
on or after July 1, 2018, but before July 1, 2021, equals or
exceeds twenty-seven million dollars.
(b) As soon as practicable after June 30, 2021, the
authority shall notify the general assembly of the aggregate
amount of renewable chemical production tax credits awarded
under section 15.319 on or after July 1, 2018, but before
July 1, 2021, and whether or not the tax credit allocation
-7-limitation described in subparagraph division (a) is
applicable.
(c) This subparagraph (3) is repealed July 1, 2022.
Sec. 26. Section 15.119, subsection 2, paragraph h, Code
2021, is amended to read as follows:
h. The renewable chemical production tax credit program
administered pursuant to sections 15.315 through 15.322. In
allocating tax credits pursuant to this subsection for the
fiscal year beginning July 1, 2021, and for each fiscal year
thereafter, the authority shall not allocate more than ten five
million dollars for purposes of this paragraph. This paragraph
is repealed July 1, 2030.
Sec. 27. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
DIVISION X
HIGH QUALITY JOBS — ELIGIBILITY REQUIREMENTS
Sec. 28. HIGH QUALITY JOBS — REDUCTIONS IN OPERATIONS.
1. Notwithstanding section 15.329, subsection 1, paragraph
“b”, subparagraph (2), the economic development authority shall
not presume that a reduction in operations is a reduction in
operations while simultaneously applying for assistance with
regard to a business that submits an application on or before
June 30, 2022, if the business demonstrates to the satisfaction
of the authority all of the following:
a. That the reduction in operations occurred after March 1,
2020.
b. That the reduction in operations was caused by the
COVID-19 pandemic.
2. The economic development authority shall consider
whether the benefit of the project proposed by a business
under subsection 1 outweighs any negative impact related to
the business’s reduction in operations. The business shall
remain subject to all other eligibility requirements pursuant
to section 15.329.
3. This section is repealed July 1, 2022.
-8-DIVISION XI
Manufacturing 4.0
Sec. 29. NEW SECTION. 15.371 Manufacturing 4.0 technology
investment program.
1. This section shall be known as and may be cited as the
“Manufacturing 4.0 Technology Investment Program”.
2. For purposes of this section unless the context otherwise
requires:
a. “Financial assistance” means the same as defined in
section 15.102.
b. “Manufacturing 4.0 technology investments” means projects
that are intended to lead to the adoption of, and integration
of, smart technologies into existing manufacturing operations
located in the state by mitigating the risk to the manufacturer
of significant technology investments. Projects may include
investments in specialized hardware, software, or other
equipment intended to assist a manufacturer in increasing the
manufacturer’s productivity, efficiency, and competitiveness.
3. a. A manufacturing 4.0 technology investment fund
is created within the state treasury under the control of
the authority for the purpose of financing manufacturing 4.0
technology investments as described in this section.
b. The fund may be administered as a revolving fund and
may consist of any moneys appropriated by the general assembly
for purposes of this section and any other moneys that are
lawfully available to the authority. Any moneys appropriated
to the fund shall be used for purposes of the manufacturing
4.0 technology investment program. The authority may use all
other moneys in the fund, including interest, earnings, and
recaptures, for purposes of this section.
c. Notwithstanding section 8.33, moneys appropriated in this
section that remain unencumbered or unobligated at the close of
the fiscal year shall not revert but shall remain available for
expenditure for the purposes designated until the close of the
succeeding fiscal year.
-9- d. Notwithstanding any law to the contrary, the authority
may transfer any unobligated and unencumbered moneys in the
fund, except for moneys appropriated for purposes of this
section, to any fund created pursuant to section 15.106A,
subsection 1, paragraph “o”.
4. The authority shall establish and administer a
manufacturing 4.0 technology investment program and shall use
moneys in the fund to award financial assistance to eligible
manufacturers for manufacturing 4.0 technology investments.
5. To be eligible for a financial assistance award under the
manufacturing 4.0 technology investment program, a manufacturer
must do all of the following:
a. Manufacture goods at a facility located in this state.
b. Have a North American industry classification system
number within the manufacturing sector range of 31-33.
c. Have been an established business for a minimum of three
years prior to the date of application to the program.
d. Derive a minimum of fifty-one percent of the
manufacturer’s gross revenue from the sale of manufactured
goods.
e. Employ a minimum of three full-time employees and no
more than seventy-five full-time employees across all of the
manufacturer’s locations.
f. Have an assessment of the manufacturer’s proposed
manufacturing 4.0 technology investment completed by the center
for industrial research and service at Iowa state university of
science and technology.
g. Demonstrate the ability to provide matching financial
support for the manufacturer’s manufacturing 4.0 technology
investment on a one-to-one basis. The matching financial
support must be obtained from private sources.
6. Eligible manufacturers shall submit applications to the
manufacturing 4.0 technology investment program in the manner
prescribed by the authority by rule.
7. a. The authority may accept applications during one
-10-or more application periods each fiscal year as determined by
the authority. All completed applications shall be reviewed
and scored on a competitive basis pursuant to rules adopted by
the authority. The authority may engage an outside technical
review panel to complete technical reviews of applications.
The board shall review the recommendations of the authority
and of the technical review panel, if applicable, and shall
approve, defer, or deny each application.
b. In making recommendations to the board, the authority and
the technical review panel, if applicable, shall consider all
of the following:
(1) The completeness of the manufacturer’s application.
(2) Whether the board should approve or deny an application.
(3) If the board approves an application, the type and
amount of financial assistance that should to be awarded to the
applicant.
(4) The percentage of the manufacturer’s gross revenue
that is derived from the sale of manufactured goods pursuant
to subsection 5, paragraph “d”.
(5) Whether the manufacturer’s proposed manufacturing
4.0 technology investment is consistent with the assessment
completed by the center for industrial research and service at
Iowa state university of science and technology pursuant to
subsection 5, paragraph “f”.
c. The board shall not approve an application for financial
assistance for a manufacturing 4.0 technology investment that
was made prior to the date of the application.
8. From moneys appropriated to the manufacturing 4.0
technology investment fund from the general fund of the state
and any other state moneys lawfully available to the authority
for the manufacturing 4.0 technology investment program, the
maximum amount of financial assistance awarded from such moneys
to an eligible manufacturer shall not exceed seventy-five
thousand dollars.
9. The authority shall adopt rules pursuant to chapter 17A
-11-necessary to implement and administer this section.
DIVISION XII
ENERGY INFRASTRUCTURE REVOLVING LOAN PROGRAM
Sec. 30. Section 476.10A, subsection 2, Code 2021, is
amended to read as follows:
2. Notwithstanding section 8.33, any unexpended moneys
remitted to the treasurer of state under this section shall be
retained for the purposes designated. Notwithstanding section
12C.7, subsection 2, interest or earnings on investments or
time deposits of the moneys remitted under this section shall
be retained and used for the purposes designated, pursuant to
section 476.46.
Sec. 31. Section 476.46, subsection 2, paragraph e,
subparagraph (3), Code 2021, is amended to read as follows:
(3) Interest on the fund shall be deposited in the fund.
A portion of the interest on the fund, not to exceed fifty
percent of the total interest accrued, shall be used for
promotion and administration of the fund.
Sec. 32. Section 476.46, Code 2021, is amended by adding the
following new subsections:
NEW SUBSECTION. 3. The Iowa energy center shall not
initiate any new loans under this section after June 30, 2021.
NEW SUBSECTION. 4. Loan payments received under this
section on or after July 1, 2021, and any other moneys in the
fund on or after July 1, 2021, shall be deposited in the energy
infrastructure revolving loan fund created in section 476.46A.
Sec. 33. NEW SECTION. 476.46A Energy infrastructure
revolving loan program.
1. a. An energy infrastructure revolving loan fund is
created in the office of the treasurer of state and shall be
administered by the Iowa energy center established in section
15.120.
b. The fund may be administered as a revolving fund and may
consist of any moneys appropriated by the general assembly for
purposes of this section and any other moneys that are lawfully
-12-directed to the fund.
c. Moneys in the fund shall be used to provide financial
assistance for the development and construction of energy
infrastructure, including projects that support electric or gas
generation transmission, storage, or distribution; electric
grid modernization; energy-sector workforce development;
emergency preparedness for rural and underserved areas; the
expansion of biomass, biogas, and renewable natural gas;
innovative technologies; and the development of infrastructure
for alternative fuel vehicles.
d. Notwithstanding section 8.33, moneys appropriated in this
section that remain unencumbered or unobligated at the close of
the fiscal year shall not revert but shall remain available for
expenditure for the purposes designated until the close of the
succeeding fiscal year.
e. Notwithstanding section 12C.7, subsection 2, interest or
earnings on moneys in the fund shall be credited to the fund.
2. a. The Iowa energy center shall establish and administer
an energy infrastructure revolving loan program to encourage
the development of energy infrastructure within the state.
b. An individual, business, rural electric cooperative, or
municipal utility located and operating in this state shall be
eligible for financial assistance under the program. With the
approval of the Iowa energy center governing board established
under section 15.120, subsection 2, the economic development
authority shall determine the amount and the terms of all
financial assistance awarded to an individual, business, rural
electric cooperative, or municipal utility under the program.
All agreements and administrative authority sha11 be vested in
the Iowa energy center governing board.
c. The economic development authority may use not more than
five percent of the moneys in the fund at the beginning of each
fiscal year for purposes of administrative costs, marketing,
technical assistance, and other program support.
3. For the purposes of this section:
-13- a. “Energy infrastructure” means land, buildings, physical
plant and equipment, and services directly related to the
development of projects used for, or useful for, electricity or
gas generation, transmission, storage, or distribution.
b. “Financial assistance” means the same as defined in
section 15.102.
Sec. 34. ALTERNATE ENERGY REVOLVING LOAN FUND — MONEYS
TRANSFERRED AND APPROPRIATED. Any unencumbered or unobligated
moneys remaining after June 30, 2021, in the alternate energy
revolving loan fund created pursuant to section 476.46, are
transferred and appropriated to the energy infrastructure
revolving loan fund created pursuant to section 476.46A, to be
used for purposes of the energy infrastructure revolving loan
program.
DIVISION XIII
WORKFORCE HOUSING TAX INCENTIVES
Sec. 35. Section 15.119, subsection 2, paragraph g, Code
2021, is amended to read as follows:
g. (1) The workforce housing tax incentives program
administered pursuant to sections 15.351 through 15.356.
In allocating tax credits pursuant to this subsection, the
authority shall not allocate more than twenty-five thirty-five
million dollars for purposes of this paragraph. Of the moneys
allocated under this paragraph, ten seventeen million five
hundred thousand dollars shall be reserved for allocation to
qualified housing projects in small cities, as defined in
section 15.352, that are registered on or after July 1, 2017.
(2) (a) Notwithstanding subparagraph (1), in allocating
tax credits pursuant to this subsection for the fiscal year
beginning July 1, 2021, and ending June 30, 2022, the authority
shall not allocate more than forty million dollars for the
purposes of this paragraph. Of the moneys allocated under
this paragraph for the fiscal year beginning July 1, 2021, and
ending June 30, 2022, twelve million dollars shall be reserved
for allocation to qualified housing projects in small cities,
-14-as defined in section 15.352, that are registered on or after
July 1, 2017.
(b) This subparagraph is repealed July 1, 2022.
Sec. 36. Section 15.354, subsection 3, paragraph d, Code
2021, is amended to read as follows:
d. Upon completion of a housing project, an a housing
business shall submit all of the following to the authority:
(1) Anexamination of the project in accordance with the
American institute of certified public accountants’ statements
on standards for attestation engagements, completed by a
certified public accountant authorized to practice in this
state, shall be submitted to the authority.
(2) A statement of the final amount of qualifying new
investment for the housing project.
(3) Any information the authority deems necessary to ensure
compliance with the agreement signed by the housing business
pursuant to paragraph “a”, the requirements of this part,
and rules the authority and the department of revenue adopt
pursuant to section 15.356.
Sec. 37. Section 15.354, subsection 3, paragraph e,
subparagraph (1), Code 2021, is amended to read as follows:
(1) Upon review of the examination, and verification of
the amount of the qualifying new investment, and review of
any other information submitted pursuant to paragraph “d”,
subparagraph (3), the authority may notify the housing business
of the amount that the housing business may claim as a refund
of the sales and use tax under section 15.355, subsection 2,
and may issue a tax credit certificate to the housing business
stating the amount of workforce housing investment tax credits
under section 15.355, subsection 3, the eligible housing
business may claim. The sum of the amount that the housing
business may claim as a refund of the sales and use tax and
the amount of the tax credit certificate shall not exceed the
amount of the tax incentive award.
Sec. 38. Section 15.354, subsection 6, paragraphs b and c,
-15-Code 2021, are amended to read as follows:
b. Notwithstanding subsection 1, the authority may accept
applications for disaster recovery housing projects on a
continuous basis establish a disaster recovery application
period following the declaration of a major disaster by the
president of the United States for a county in Iowa.
c. Notwithstanding subsection 2, paragraphs “a”, “b”, and
“d”, upon Upon review of a housing business’s application,
and scoring of all applications received during a disaster
recovery application period, the authority may make a tax
incentive award to a disaster recovery housing project. The
tax incentive award shall represent the maximum amount of tax
incentives that the disaster recovery housing project may
qualify for under the program. In determining a tax incentive
award, the authority shall not use an amount of project costs
that exceeds the amount included in the application of the
housing business. Tax incentive awards shall be approved by
the director of the authority.
Sec. 39. Section 15.355, subsection 2, Code 2021, is amended
to read as follows:
2. A housing business may claim a refund of the sales and
use taxes paid under chapter 423 that are directly related to
a housing project and specified in the agreement. The refund
available pursuant to this subsection shall be as provided in
section 15.331A, excluding subsection 2, paragraph “c”, of
that section. For purposes of the program, the term “project
completion”, as used in section 15.331A, shall mean the date
on which the authority notifies the department of revenue that
all applicable requirements of an the agreement entered into
pursuant to section 15.354, subsection 3, paragraph “a”, and
all applicable requirements of this part, including the rules
the authority and the department of revenue adopted pursuant to
section 15.356, are satisfied.
DIVISION XIV
brownfields and grayfields
-16- Sec. 40. Section 15.119, subsection 3, Code 2021, is amended
to read as follows:
3. In allocating the amount of tax credits authorized
pursuant to subsection 1 among the programs specified in
subsection 2, the authority shall not allocate more than ten
fifteen million dollars for purposes of subsection 2, paragraph
“f”.
Sec. 41. Section 15.293A, subsection 8, Code 2021, is
amended to read as follows:
8. This section is repealed on June 30, 2021 2031.
Sec. 42. Section 15.293B, Code 2021, is amended by adding
the following new subsection:
NEW SUBSECTION. 5A. a. Tax credits revoked under
subsection 3 including tax credits revoked up to five years
prior to the effective date of this division of this Act, and
tax credits not awarded under subsection 4 or 5, may be awarded
in the next annual application period established in subsection
1, paragraph “c”.
b. Tax credits awarded pursuant to paragraph “a” shall not
be counted against the limit under section 15.119, subsection
3.
Sec. 43. Section 15.293B, subsection 7, Code 2021, is
amended to read as follows:
7. This section is repealed on June 30, 2021 2031.
Sec. 44. EFFECTIVE DATE. The following, being deemed of
immediate importance, take effect upon enactment:
1. The section of this division of this Act amending section
15.293A, subsection 8.
2. The section of this division of this Act amending section
15.293B, subsection 7.
DIVISION XV
Downtown loan guarantee program
Sec. 45. NEW SECTION. 15.431 Downtown loan guarantee
program.
1. The economic development authority, in partnership with
-17-the Iowa finance authority, shall establish and administer a
downtown loan guarantee program to encourage Iowa downtown
businesses and banks to reinvest and reopen following the
COVID-19 pandemic.
2. In order for a loan to be guaranteed, all of the
following conditions must be true:
a. The loan finances an eligible downtown resource center
community catalyst building remediation grant project or main
street Iowa challenge grant within a designated district.
b. The loan finances a rehabilitation project, or finances
acquisition or refinancing costs associated with the project.
c. At least twenty-five percent of the project costs are
used for construction on the project or renovation.
d. The project includes a housing component.
e. The loan is used for construction of the project,
permanent financing of the project, or both.
f. A federally insured financial lending institution issued
the loan.
g. The loan does not reimburse the borrower for working
capital, operations, or similar expenses.
h. The project meets downtown resource center and main
street Iowa design review.
3. a. For a loan amount less than or equal to five hundred
thousand dollars, the economic development authority may
guarantee up to fifty percent of the loan amount.
b. For a loan amount greater than five hundred thousand
dollars, the economic development authority may provide a
maximum loan guarantee of up to two hundred fifty thousand
dollars.
4. A project loan must be secured by a mortgage against the
project property.
5. The economic development authority may guarantee loans
for up to five years. The economic development authority
may extend the loan guarantee for an additional five years
if an underwriting review finds that an extension would be
-18-beneficial.
6. The lender shall pay an annual loan guarantee fee as set
forth by rule.
7. The economic development authority reserves the right
to deny a loan guarantee for unreasonable bank loan fees or
interest rate.
8. The loan must not be insured or guaranteed by another
local, state, or federal guarantee program.
9. The loan guarantee is not transferable if the loan or the
project is sold or transferred.
10. In the event of a loss due to default, the loan
guarantee proportionally pays the guarantee percentage of the
loss to the lender.
11. Moneys for the program may consist of any moneys
appropriated by the general assembly for purposes of this
section, and any other moneys that are lawfully available
to the economic development authority, including moneys
transferred or deposited from other funds created pursuant to
section 15.106A, subsection 1, paragraph “o”.
DIVISION XVI
Disaster recovery housing assistance
Sec. 46. NEW SECTION. 16.57A Transfer of unobligated or
unencumbered funds — report.
1. Notwithstanding any other provision of law to the
contrary, the authority may transfer any unobligated and
unencumbered moneys in any revolving loan program fund created
pursuant to section 16.46, 16.47, 16.48, or 16.49, for deposit
in the disaster recovery housing assistance fund created in
section 16.57B.
2. Notwithstanding section 8.39, and any other law to
the contrary, with the prior written consent and approval of
the governor, the executive director of the authority may
transfer any unobligated and unencumbered moneys in any fund
created pursuant to section 16.5, subsection 1, paragraph
“s”, for deposit in the disaster recovery housing assistance
-19-fund created in section 16.57B. The prior written consent and
approval of the director of the department of management shall
not be required to transfer the unobligated and unencumbered
moneys.
3. Notwithstanding section 8.39, and any other law to the
contrary, with the prior written approval of the governor, the
director of the economic development authority may transfer
any unobligated and unencumbered moneys in any fund created
pursuant to section 15.106A, subsection 1, paragraph “o”,
for deposit in the disaster recovery housing assistance fund
created in section 16.57B.
4. Any transfer made under this section shall be reported in
the same manner as provided in section 8.39, subsection 5.
Sec. 47. NEW SECTION. 16.57B Disaster recovery housing
assistance program — fund.
1. Definitions. As used in this section, unless the context
otherwise requires:
a. “Disaster-affected home” means a primary residence that
is destroyed or damaged due to a natural disaster that occurs
on or after the effective date of this division of this Act,
and the primary residence is located in a county that is the
subject of a state of disaster emergency proclamation by the
governor that authorizes disaster recovery housing assistance.
b. “Fund” means the disaster recovery housing assistance
fund.
c. “Local program administrator” means any of the following:
(1) The cities of Ames, Cedar Falls, Cedar Rapids, Council
Bluffs, Davenport, Des Moines, Dubuque, Iowa City, Waterloo,
and West Des Moines.
(2) A council of governments whose territory includes at
least one county that is the subject of a state of disaster
emergency proclamation by the governor that authorizes disaster
recovery housing assistance or the eviction prevention program
under section 16.57C on or after the effective date of this
division of this Act.
-20- (3) A community action agency as defined in section 216A.91
and whose territory includes at least one county that is the
subject of a state of disaster emergency proclamation by the
governor that authorizes disaster recovery housing assistance
or the eviction prevention program under section 16.57C on or
after the effective date of this division of this Act.
(4) A qualified local organization or governmental entity
as determined by rules adopted by the authority.
d. “Program” means the disaster recovery housing assistance
program.
e. “Replacement housing” means housing purchased
by a homeowner or leased by a renter needed to replace
a disaster-affected home that is destroyed or damaged
beyond reasonable repair as determined by a local program
administrator.
f. “State of disaster emergency” means the same as described
in section 29C.6, subsection 1.
2. Fund.
a. (1) A disaster recovery housing assistance fund is
created within the authority. The moneys in the fund shall be
used by the authority for the development and operation of a
forgivable loan and grant program for homeowners and renters
with disaster-affected homes, and for the eviction prevention
program pursuant to section 16.57C.
(2) Notwithstanding section 12C.7, subsection 2, interest
or earnings on moneys deposited in the fund shall be credited
to the fund. Notwithstanding section 8.33, moneys credited to
the fund shall not revert at the close of a fiscal year.
b. Moneys transferred by the authority for deposit in the
fund, moneys appropriated to the fund, and any other moneys
available to and obtained or accepted by the authority for
placement in the fund shall be deposited in the fund.
c. The authority shall not use more than five percent of
the moneys in the fund on July 1 of a fiscal year for purposes
of administrative costs and other program support during the
-21-fiscal year.
3. Program.
a. The authority shall establish and administer a disaster
recovery housing assistance program and shall use moneys in
the fund to award forgivable loans to eligible homeowners and
grants to eligible renters of disaster-affected homes. Moneys
in the fund may be expended following a state of disaster
emergency proclamation by the governor pursuant to section
29C.6 that authorizes disaster recovery housing assistance.
b. The authority may enter into an agreement with one or
more local program administrators to administer the program.
4. Registration required. To be considered for a forgivable
loan or grant under the program, a homeowner or renter must
register for the disaster case management program established
pursuant to section 29C.20B. The disaster case manager may
refer the homeowner or renter to the appropriate local program
administrator.
5. Homeowners.
a. To be eligible for a forgivable loan under the program,
all of the following requirements shall apply:
(1) The homeowner’s disaster-affected home must have
sustained damage greater than the damage that is covered by the
homeowner’s property and casualty insurance policy insuring the
home plus any other state or federal disaster-related financial
assistance that the homeowner is eligible to receive.
(2) A local official must either deem the disaster-affected
home suitable for rehabilitation or damaged beyond reasonable
repair.
(3) The disaster-affected home is not eligible for buyout by
the county or city where the disaster-affected home is located,
or the disaster-affected home is eligible for a buyout by the
county or city where the disaster-affected home is located, but
the homeowner is requesting a forgivable loan for the repair
or rehabilitation of the homeowner’s disaster-affected home in
lieu of a buyout.
-22- (4) Assistance under the program must not duplicate
benefits provided by any local, state, or federal disaster
recovery assistance program.
b. If a homeowner is referred to the authority or to a
local program administrator by the disaster case manager of the
homeowner, the authority may award a forgivable loan to the
eligible homeowner for any of the following purposes:
(1) Repair or rehabilitation of the disaster-affected home.
(2) (a) Down payment assistance on the purchase of
replacement housing, and the cost of reasonable repairs to be
performed on the replacement housing to render the replacement
housing decent, safe, sanitary, and in good repair.
(b) Replacement housing shall not be located in a
one-hundred-year floodplain.
(c) For purposes of this subparagraph, “decent, safe,
sanitary, and in good repair” means the same as described in 24
C.F.R.§5.703.
c. The authority shall determine the interest rate for the
forgivable loan.
d. If a homeowner who has been awarded a forgivable loan
sells a disaster-affected home or replacement housing for which
the homeowner received the forgivable loan prior to the end
of the loan term, the remaining principal on the forgivable
loan shall be due and payable pursuant to rules adopted by the
authority.
6. Renters.
a. To be eligible for a grant under the program, all of the
following requirements shall apply:
(1) A local program administrator either deems
the disaster-affected home of the renter suitable for
rehabilitation but unsuitable for current short-term
habitation, or the disaster-affected home is damaged beyond
reasonable repair.
(2) Assistance under the program must not duplicate
benefits provided by any local, state, or federal disaster
-23-recovery assistance program.
b. If a renter is referred to the authority or to a local
program administrator by the disaster case manager of the
renter, the authority may award a grant to the eligible renter
to provide short-term financial assistance for the payment of
rent for replacement housing.
7. Report. On or before January 31 of each year, the
authority shall submit a report to the general assembly
that identifies all of the following for the calendar year
immediately preceding the year of the report:
a. The date of each state of disaster emergency proclamation
by the governor that authorized disaster recovery housing
assistance under this section.
b. The total number of forgivable loans and grants awarded.
c. The total number of forgivable loans, and the amount of
each loan awarded for repair or rehabilitation.
d. The total number of forgivable loans, and the amount of
each loan, awarded for down payment assistance on the purchase
of replacement housing and the cost of reasonable repairs to be
performed on the replacement housing to render the replacement
housing decent, safe, sanitary, and in good repair.
e. The total number of grants, and the amount of each grant,
awarded for rental assistance.
f. The total number of forgivable loans and grants awarded
in each county in which at least one homeowner or renter has
been awarded a forgivable loan or grant.
g. Each local program administrator involved in the
administration of the program.
h. The total amount of forgivable loan principal repaid.
Sec. 48. NEW SECTION. 16.57C Eviction prevention program.
1. a. “Eligible renter” means a renter whose income meets
the qualifications of the program, who is at risk of eviction,
and who resides in a county that is the subject of a state of
disaster emergency proclamation by the governor that authorizes
the eviction prevention program.
-24- b. “Eviction prevention partner” means a qualified local
organization or governmental entity as determined by rule by
the authority.
2. The authority shall establish and administer an eviction
prevention program. Under the eviction prevention program,
the authority shall award grants to eligible renters and to
eviction prevention partners for purposes of this section.
Grants may be awarded upon a state of disaster emergency
proclamation by the governor that authorizes the eviction
prevention program. Eviction prevention assistance shall be
paid out of the fund established in section 16.57B.
3. a. Grants awarded to eligible renters pursuant to this
section shall be used for short-term financial rent assistance
to keep eligible renters in the current residences of such
renters.
b. Grants awarded to eviction prevention partners pursuant
to this section shall be used to pay for rent or services
provided to eligible renters for the purpose of preventing the
eviction of eligible renters.
4. The authority may enter into an agreement with one or
more local program administrators to administer the program.
Sec. 49. NEW SECTION. 16.57D Rules.
The authority shall adopt rules pursuant to chapter 17A to
implement and administer this part, including rules to do all
of the following:
1. Establish the maximum forgivable loan and grant amounts
awarded under the program.
2. Establish the terms of any forgivable loan provided under
the program.
3. Income qualifications of eligible renters in the
eviction prevention program.
Sec. 50. CODE EDITOR DIRECTIVE. The Code editor shall
designate sections 16.57A through 16.57D, as enacted by
this division of this Act, as a new part within chapter 16,
subchapter VIII, and may redesignate the new and preexisting
-25-parts, replace references to sections 16.57A through 16.57D
with references to the new part, and correct internal
references as necessary, including references in subchapter or
part headnotes.
Sec. 51. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
DIVISION XVII
BONUS DEPRECIATION
Sec. 52. Section 422.7, subsection 39A, Code 2021, is
amended by striking the subsection.
Sec. 53. Section 422.35, subsection 19A, Code 2021, is
amended by striking the subsection.
Sec. 54. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to January 1, 2021, for tax years
beginning on or after that date, and for qualified property
placed in service on or after that date.
DIVISION XVIII
BUSINESS INTEREST EXPENSE DEDUCTION
Sec. 55. Section 422.7, subsection 60, paragraph b, Code
2021, is amended by striking the paragraph.
Sec. 56. Section 422.35, subsection 27, paragraph b, Code
2021, is amended by striking the paragraph.
Sec. 57. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to January 1, 2021, for tax years
beginning on or after that date.
DIVISION XIX
BEGINNING FARMER TAX CREDIT
Sec. 58. Section 16.58, subsections 1, 2, and 3, Code 2021,
are amended to read as follows:
1. “Agricultural assets” means agricultural land,
agricultural improvements, depreciable agricultural property,
crops, or livestock.
2. “Agricultural improvements” improvement” means any
improvements, including buildings, structures, or fixtures
suitable for use in farming which are, if located on any size
-26-parcel of agricultural land.
3. “Agricultural land” means land suitable for use in
farming, any portion of which may include an agricultural
improvement.
Sec. 59. Section 16.77, subsection 2, Code 2021, is amended
to read as follows:
2. “Agricultural lease agreement” or “agreement” means an
agreement for the transfer of agricultural assets, that must at
least include a lease of agricultural land, from an eligible
taxpayer to a qualified beginning farmer as provided in section
16.79A.
Sec. 60. Section 16.79A, subsection 1, Code 2021, is amended
to read as follows:
1. a. A beginning farmer tax credit is allowed only for
agricultural assets that are subject to an agricultural lease
agreement entered into by an eligible taxpayer and a qualifying
beginning farmer participating in the beginning farmer tax
credit program established pursuant to section 16.78.
b. The tax credit is allowed regardless of whether the
principle agricultural asset is soil, pasture, or a building or
other structure used in farming.
Sec. 61. Section 16.79A, subsection 2, Code 2021, is amended
to read as follows:
2. The agreement must include the lease of agricultural
land located in this state, including any or agricultural
improvements located in this state, and may provide for the
rental of agricultural equipment as defined in section 322F.1.
Sec. 62. Section 16.79A, subsection 3, paragraph c, Code
2021, is amended to read as follows:
c. The agreement must be for at least two years, but not
more than five years. The agreement may be renewed any number
of times by the eligible taxpayer and qualified beginning
farmer for a term of at least two years, but not more than five
years. However, an eligible taxpayer shall not participate in
the program for more than fifteen years.
-27- Sec. 63. Section 16.81, subsection 4, Code 2021, is amended
by striking the subsection.
Sec. 64. Section 16.81, subsection 6, Code 2021, is amended
to read as follows:
6. The authority shall approve all beginning farmer tax
credit applications that meet the requirements of this subpart
and make tax credit awards on a first-come, first-served basis,
subject to the limitations in section 16.82A. An eligible
taxpayer may apply and be approved to enter into agreements
with different qualified beginning farmers.
Sec. 65. Section 16.82, subsection 5, Code 2021, is amended
to read as follows:
5. The amount of tax credits that may be awarded to an
eligible taxpayer for any one year under all agreements an
agreement shall not exceed fifty thousand dollars.
Sec. 66. BEGINNING FARMER TAX CREDIT PROGRAM — FORMER
PERIOD OF PARTICIPATION EXTENDED. An eligible taxpayer first
participating in the beginning farmer tax credit program on or
after January 1, 2019, as provided in 2019 Iowa Acts, chapter
161, for a tax year beginning on or after that date, may
participate in the program for not more than fifteen years in
the same manner as provided in section 16.79A, as amended by
this division of this Act.
Sec. 67. EFFECTIVE DATE. This division of this Act takes
effect January 1, 2022.
DIVISION XX
PROMOTIONAL PLAY
Sec. 68. Section 99F.1, subsections 1, 25, and 30, Code
2021, are amended to read as follows:
1. “Adjusted gross receipts” means the gross receipts on
gambling games less winnings paid to wagerers on gambling games
and less promotional play receipts on gambling games. However,
for each fiscal year during the time period beginning July 1,
2021, and ending June 30, 2026, “adjusted gross receipts” does
not shall include promotional play receipts received after the
-28-date in any fiscal year that the commission determines that
the wagering tax imposed pursuant to section 99F.11 on all
licensees in that fiscal year on promotional play receipts
exceeds twenty-five million eight hundred twenty thousand
dollars on gambling games.
25. “Promotional play receipts” means the total sums wagered
on gambling games with tokens, chips, electronic credits, or
other forms of cashless wagering provided by the licensee
without an exchange of money as described in section 99F.9,
subsection 3.
30. “Sports wagering net receipts” means the gross receipts
less winnings paid to wagerers and less promotional play
receipts on sports wagering.
Sec. 69. Section 99F.6, subsection 4, paragraph a,
subparagraphs (3) and (5), Code 2021, are amended to read as
follows:
(3) The commission shall authorize, subject to the debt
payments for horse racetracks and the provisions of paragraph
“b” for dog racetracks, a licensee who is also licensed to
conduct pari-mutuel dog or horse racing to use receipts
from gambling games and sports wagering within the racetrack
enclosure to supplement purses for races particularly for
Iowa-bred horses pursuant to an agreement which shall be
negotiated between the licensee and representatives of the
dog or horse owners. For agreements subject to commission
approval concerning purses for horse racing beginning on or
after January 1, 2006, the agreements shall provide that total
annual purses for all horse racing shall be four percent of
sports wagering net receipts and promotional play receipts on
sports wagering and no less than eleven percent of the first
two hundred million dollars of net receipts, and six percent of
net receipts above two hundred million dollars. In addition,
live standardbred horse racing shall not be conducted at the
horse racetrack in Polk county, but the purse moneys designated
for standardbred racing pursuant to section 99D.7, subsection
-29-5, paragraph “b”, shall be included in calculating the total
annual purses required to be paid pursuant to this subsection.
Agreements that are subject to commission approval concerning
horse purses for a period of time beginning on or after January
1, 2006, shall be jointly submitted to the commission for
approval.
(5) For purposes of this paragraph, “net receipts” means
the annual adjusted gross receipts from all gambling games
and, beginning July 1, 2026, promotional play receipts on all
gambling games less the annual amount of money pledged by the
owner of the facility to fund a project approved to receive
vision Iowa funds as of July 1, 2004.
Sec. 70. Section 99F.11, Code 2021, is amended by adding the
following new subsection:
NEW SUBSECTION. 2A. a. Notwithstanding any provision
of this section to the contrary, the tax rate imposed on a
licensee each fiscal year on any amount of promotional play
receipts on gambling games included as adjusted gross receipts
shall be determined by multiplying the adjusted percentage
by the wagering tax applicable to the licensee pursuant to
subsection 2.
b. For purposes of this subsection, “adjusted percentage”
means as follows:
(1) For the fiscal year beginning July 1, 2021, and ending
June 30, 2022, eighty-three and one-third percent.
(2) For the fiscal year beginning July 1, 2022, and ending
June 30, 2023, sixty-six and two-thirds percent.
(3) For the fiscal year beginning July 1, 2023, and ending
June 30, 2024, fifty percent.
(4) For the fiscal year beginning July 1, 2024, and ending
June 30, 2025, thirty-three and one-third percent.
(5) For the fiscal year beginning July 1, 2025, and ending
June 30, 2026, sixteen and two-thirds percent.
c. This subsection is repealed July 1, 2026.
DIVISION XXI
-30-TARGETED JOBS WITHHOLDING CREDIT
Sec. 71. Section 403.19A, subsection 3, paragraph c,
subparagraph (2), Code 2021, is amended to read as follows:
(2) The pilot project city and the economic development
authority shall not enter into a withholding agreement after
June 30, 2021 2024.
DIVISION XXII
FOOD BANKS
Sec. 72. Section 423.3, Code 2021, is amended by adding the
following new subsection:
NEW SUBSECTION. 107. The sales price of the sale or
rental of tangible personal property sold to and of services
furnished to a nonprofit food bank, if the property or
services are used by the nonprofit food bank for a charitable
purpose. For purposes of this subsection, “nonprofit food
bank” means an organization organized under chapter 504 and
qualifying under section 501(c)(3) of the Internal Revenue
Code as an organization exempt from federal income tax under
section 501(a) of the Internal Revenue Code that maintains
an established operation involving the provision of food or
edible commodities or the products thereof on a regular basis
to persons in need or to food pantries, soup kitchens, hunger
relief centers, or other food or feeding centers that, as an
integral part of their normal activities, provide meals or food
on a regular basis to persons in need.
DIVISION XXIII
emergency volunteer — tax credit
Sec. 73. Section 422.12, subsection 2, paragraph c,
subparagraph (1), Code 2021, is amended to read as follows:
(1) A volunteer fire fighter and volunteer emergency
medical services personnel member credit equal to one two
hundred fifty dollars to compensate the taxpayer for the
voluntary services if the volunteer served for the entire
tax year. A taxpayer who is a paid employee of an emergency
medical services program or a fire department and who is also
-31-a volunteer emergency medical services personnel member or
volunteer fire fighter in a city, county, or area governed
by an agreement pursuant to chapter 28E where the emergency
medical services program or fire department performs services,
shall qualify for the credit provided under this paragraph “c”.
Sec. 74. Section 422.12, subsection 2, paragraph d,
subparagraph (1), Code 2021, is amended to read as follows:
(1) A reserve peace officer credit equal to one two hundred
fifty dollars to compensate the taxpayer for services as a
reserve peace officer if the reserve peace officer served for
the entire tax year.
Sec. 75. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to January 1, 2021, for tax years
beginning on or after that date.
DIVISION XXIV
INDIVIDUAL INCOME TAX CHECKOFFS
Sec. 76. Section 173.22, subsection 2, Code 2021, is amended
to read as follows:
2. A foundation fund is created within the state treasury
composed of moneys appropriated or available to and obtained
or accepted by the foundation. The foundation fund shall also
include moneys credited transferred to the fund as provided in
section 422.12I.
Sec. 77. NEW SECTION. 422.12D Income tax checkoff for the
Iowa state fair foundation fund.
1. A person who files an individual or a joint income tax
return with the department of revenue under section 422.13
may designate one dollar or more to be paid to the foundation
fund of the Iowa state fair foundation as established in
section 173.22. If the refund due on the return or the payment
remitted with the return is insufficient to pay the amount
designated by the taxpayer to the foundation fund, the amount
designated shall be reduced to the remaining amount of the
refund or the remaining amount remitted with the return. The
designation of a contribution to the foundation fund under this
-32-section is irrevocable.
2. The director of revenue shall draft the income tax form
to allow the designation of contributions to the foundation
fund on the tax return. The department, on or before January
31, shall transfer the total amount designated on the tax
form due in the preceding year to the foundation fund.
However, before a checkoff pursuant to this section shall be
permitted, all liabilities on the books of the department of
administrative services and accounts identified as owing under
section 8A.504 shall be satisfied.
3. The Iowa state fair board may authorize payment from
the foundation fund for purposes of supporting foundation
activities.
4. The department of revenue may adopt rules to implement
this section.
5. This section is subject to repeal under section 422.12E.
Sec. 78. NEW SECTION. 422.12L Joint income tax checkoff for
veterans trust fund and volunteer fire fighter preparedness fund.
1. A person who files an individual or a joint income tax
return with the department of revenue under section 422.13 may
designate one dollar or more to be paid jointly to the veterans
trust fund created in section 35A.13 and to the volunteer fire
fighter preparedness fund created in section 100B.13. If the
refund due on the return or the payment remitted with the
return is insufficient to pay the additional amount designated
by the taxpayer, the amount designated shall be reduced to the
remaining amount of refund or the remaining amount remitted
with the return. The designation of a contribution under this
section is irrevocable.
2. The director of revenue shall draft the income tax form
to allow the designation of contributions to the veterans trust
fund and to the volunteer fire fighter preparedness fund as
one checkoff on the tax return. The department of revenue,
on or before January 31, shall transfer one-half of the total
amount designated on the tax return forms due in the preceding
-33-calendar year to the veterans trust fund and the remaining
one-half to the volunteer fire fighter preparedness fund.
However, before a checkoff pursuant to this section shall be
permitted, all liabilities on the books of the department of
administrative services and accounts identified as owing under
section 8A.504 shall be satisfied.
3. The department of revenue may adopt rules to administer
this section.
4. This section is subject to repeal under section 422.12E.
DIVISION XXV
MENTAL HEALTH FUNDING
Sec. 79. Section 123.38, subsection 2, paragraph b, Code
2021, is amended to read as follows:
b. For purposes of this subsection, any portion of license
or permit fees used for the purposes authorized in section
331.424, subsection 1, paragraph “a”, subparagraphs (1) and
(2), and in section 331.424A, shall not be deemed received
either by the division or by a local authority.
Sec. 80. Section 218.99, Code 2021, is amended to read as
follows:
218.99 Counties to be notified of patients’ personal
accounts.
The administrator in control of a state institution shall
direct the business manager of each institution under the
administrator’s jurisdiction which is mentioned in section
331.424, subsection 1, paragraph “a”, subparagraphs (1) and
(2), and for which services are paid under section 331.424A
by the county of residence or a mental health and disability
services region, to quarterly inform the county of residence
of any patient or resident who has an amount in excess of two
hundred dollars on account in the patients’ personal deposit
fund and the amount on deposit. The administrators shall
direct the business manager to further notify the county of
residence at least fifteen days before the release of funds in
excess of two hundred dollars or upon the death of the patient
-34-or resident. If the patient or resident has no residency in
this state or the person’s residency is unknown, notice shall
be made to the director of human services and the administrator
in control of the institution involved.
Sec. 81. Section 225.24, Code 2021, is amended to read as
follows:
225.24 Collection of preliminary expense.
Unless a committed private patient or those legally
responsible for the patient’s support offer to settle the
amount of the claims, the regional administrator for the
person’s county of residence shall collect, by action if
necessary, the amount of all claims for per diem and expenses
that have been approved by the regional administrator for the
county and paid by the regional administrator as provided under
section 225.21. Any amount collected shall be credited to the
county mental health and disabilities disability services fund
region combined account created in accordance with section
331.424A 331.391.
Sec. 82. Section 225C.4, subsection 1, paragraph i, Code
2021, is amended to read as follows:
i. Administer and distribute state appropriations in
connection with the mental health and disability services
regional services service fund established by section 225C.7A.
Sec. 83. Section 225C.7A, Code 2021, is amended by striking
the section and inserting in lieu thereof the following:
225C.7A Mental health and disability services regional
service fund — region incentive fund.
1. A mental health and disability services regional service
fund is created in the office of the treasurer of state under
the authority of the department. The fund shall be separate
from the general fund of the state and the balance in the fund
shall not be considered part of the balance of the general
fund of the state. Moneys in the fund include appropriations
made to the fund and other moneys deposited into the fund.
Moneys in the fund shall be used solely for purposes of making
-35-regional service payments and incentive payments under this
section.
2. a. For each fiscal year beginning on or after July 1,
2021, there is appropriated from the general fund of the state
to the mental health and disability services regional service
fund an amount necessary to make all regional service payments
under this section for that fiscal year.
b. The department shall distribute the moneys appropriated
from the mental health and disability services regional
service fund to mental health and disability services regions
for funding of services in accordance with performance-based
contracts with the regions and in the manner provided in this
section.
c. The performance-based contracts between the department
and each mental health and disability services region shall be
in effect beginning January 1, 2022, and shall include all of
the following:
(1) Authority for the department to approve, deny, or revise
each mental health and disability services region’s annual
service and budget plan under section 331.393.
(2) A requirement for the mental health and disability
services region to provide access to all core services under
section 331.397.
(3) A requirement that the mental health and disability
services region utilize all federal government funding,
including Medicaid funding, third-party payment sources, and
other nongovernmental funding prior to using regional service
payments received under this section.
(4) An annual review of the mental health and disability
services region’s administrative costs conducted by the
department.
(5) Authority for the department to establish outcome
improvement goals for populations served by the region
including but not limited to decreases in emergency department
visits, improved use of mobile crisis response and jail
-36-diversion programs, and improved employment-based outcomes.
(6) Provisions authorizing the department, in response to
a mental health and disability services region’s violation of
the contract, to implement the actions described under section
331.389, subsection 5, paragraph “a”.
3. For each fiscal year beginning on or after July 1, 2021,
the moneys available in a fiscal year in the mental health and
disability services regional service fund, except for moneys in
the region incentive fund under subsection 8, are appropriated
to the department and shall be distributed to each region on
a per capita basis calculated under subsection 4 using each
region’s population, as defined in section 331.388, for that
fiscal year.
4. The amount of each region’s regional service payment
shall be determined as follows:
a. For the fiscal year beginning July 1, 2021, an amount
equal to the product of fifteen dollars and eighty-six cents
multiplied by the sum of the region’s population for the fiscal
year.
b. For the fiscal year beginning July 1, 2022, an amount
equal to the product of thirty-eight dollars multiplied by the
sum of the region’s population for the fiscal year.
c. For the fiscal year beginning July 1, 2023, an amount
equal to the product of forty dollars multiplied by the sum of
the region’s population for the fiscal year.
d. For the fiscal year beginning July 1, 2024, an amount
equal to the product of forty-two dollars multiplied by the sum
of the region’s population for the fiscal year.
e. (1) For the fiscal year beginning July 1, 2025, and each
succeeding fiscal year, an amount equal to the product of the
sum of the region’s population for the fiscal year multiplied
by the sum of the dollar amount used to calculate the regional
service payments under this subsection for the immediately
preceding fiscal year plus the regional service growth factor
for the fiscal year.
-37- (2) For purposes of this paragraph, “regional service growth
factor” for a fiscal year is an amount equal to the product
of the dollar amount used to calculate the regional service
payments under this subsection for the immediately preceding
fiscal year multiplied by the percent increase, if any, in the
amount of sales tax revenue deposited into the general fund of
the state under section 423.2A, subsection 1, paragraph “a”,
less the transfers required under section 423.2A, subsection
2, between the fiscal year beginning three years prior to
the applicable fiscal year and the fiscal year beginning two
years prior to the applicable year, but not to exceed one and
one-half percent.
5. Regional service payments received by a region
shall be deposited in the region’s combined account under
section 331.391 and used solely for providing mental health
and disability services under the regional service system
management plan.
6. Regional service payments from the mental health
and disability services regional service fund shall be
paid in quarterly installments to the appropriate regional
administrator in July, October, January, and April of each
fiscal year.
7. a. For the fiscal year beginning July 1, 2021, each
mental health and disability services region for which the
amount certified during the fiscal year under section 331.391,
subsection 4, paragraph “b”, exceeds forty percent of the actual
expenditures of the region for the fiscal year preceding the
fiscal year in progress, the remaining quarterly payments of
the region’s regional service payment shall be reduced by
an amount equal to the amount by which the region’s amount
certified under section 331.391, subsection 4, paragraph “b”,
exceeds forty percent of the actual expenditures of the region
for the fiscal year preceding the fiscal year in progress, but
the amount of the reduction shall not exceed the total amount
of the region’s regional service payment for the fiscal year.
-38-If the region’s remaining quarterly payments are insufficient
to effectuate the required reductions under this paragraph, the
region is required to pay to the department of human services
any amount for which the reduction in quarterly payments could
not be made. The amount of reductions to quarterly payments
and amounts paid to the department under this paragraph shall
be transferred and credited to the region incentive fund under
subsection 8.
b. For the fiscal year beginning July 1, 2022, each mental
health and disability services region for which the amount
certified during the fiscal year under section 331.391,
subsection 4, paragraph “b”, exceeds twenty percent of the
actual expenditures of the region for the fiscal year preceding
the fiscal year in progress, the remaining quarterly payments
of the region’s regional service payment shall be reduced by
an amount equal to the amount by which the region’s amount
certified under section 331.391, subsection 4, paragraph “b”,
exceeds twenty percent of the actual expenditures of the region
for the fiscal year preceding the fiscal year in progress, but
the amount of the reduction shall not exceed the total amount
of the region’s regional service payment for the fiscal year.
If the region’s remaining quarterly payments are insufficient
to effectuate the required reductions under this paragraph, the
region is required to pay to the department of human services
any amount for which the reduction in quarterly payments could
not be made. The amount of reductions to quarterly payments
and amounts paid to the department under this paragraph shall
be transferred and credited to the region incentive fund under
subsection 8.
c. For the fiscal year beginning July 1, 2023, and each
succeeding fiscal year, each mental health and disability
services region for which the amount certified during the
fiscal year under section 331.391, subsection 4, paragraph “b”,
exceeds five percent of the actual expenditures of the region
for the fiscal year preceding the fiscal year in progress, the
-39-remaining quarterly payments of the region’s regional service
payment shall be reduced by an amount equal to the amount by
which the region’s amount certified under section 331.391,
subsection 4, paragraph “b”, exceeds five percent of the actual
expenditures of the region for the fiscal year preceding the
fiscal year in progress, but the amount of the reduction
shall not exceed the total amount of the region’s regional
service payment for the fiscal year. If the region’s remaining
quarterly payments are insufficient to effectuate the required
reductions under this paragraph, the region is required to
pay to the department of human services any amount for which
the reduction in quarterly payments could not be made. The
amount of reductions to quarterly payments and amounts paid to
the department under this paragraph shall be transferred and
credited to the region incentive fund under subsection 8.
8. a. A region incentive fund is created in the mental
health and disability services regional service fund under
subsection 1. The incentive fund shall consist of the
moneys appropriated or credited to the incentive fund by
law, including amounts credited to the incentive fund under
subsection 7. Notwithstanding section 8.33, moneys in the
incentive fund at the end of each fiscal year shall not revert
to any other fund but shall remain in the incentive fund for
use in subsequent fiscal years. For fiscal years beginning on
or after July 1, 2021, there is appropriated from the general
fund of the state to the incentive fund the following amounts
to be used for the purposes of this subsection:
(1) For the fiscal year beginning July 1, 2021, three
million dollars.
(2) (a) For each fiscal year beginning on or after July
1, 2025, an amount equal to the incentive fund growth factor
multiplied by the ending balance of the incentive fund at
the conclusion of the fiscal year ending June 30 immediately
preceding the application deadline under paragraph “b” for the
fiscal year for which the appropriation is made.
-40- (b) For purposes of this subparagraph, the “incentive fund
growth factor” for each fiscal year is the percent increase,
if any, in the amount of sales tax revenue deposited into the
general fund of the state under section 423.2A, subsection
1, paragraph “a”, less the transfers required under section
423.2A, subsection 2, between the fiscal year beginning three
years prior to the applicable fiscal year and the fiscal year
beginning two years prior to the applicable year, minus one and
one-half percent, and the incentive fund growth factor for any
fiscal year shall not exceed three and one-half percent.
b. To receive funding from the incentive fund, a regional
administrator must submit to the department sufficient data
to demonstrate that the region has met the standards outlined
in the region’s performance-based contract. The purpose of
the incentive fund shall be to provide appropriate financial
incentives for outcomes met from services provided by the
regional administrator’s mental health and disability services
region. The department shall make its final decisions on or
before December 15 regarding acceptance or rejection of the
submissions for incentive funds applications for assistance and
the total amount accepted shall be considered obligated.
c. In addition to incentive submission requirements under
paragraphs “d”, “e”, and “g”, basic eligibility for incentive
funds requires that a mental health and disability services
region meet all of the following conditions:
(1) The mental health and disability services region is in
compliance with the regional service system management plan
requirements of section 331.393.
(2) (a) In the fiscal year that commenced two years prior
to the fiscal year of application for incentive funds, the
ending balance, under generally accepted accounting principles,
of the mental health and disability services region’s combined
services funds was equal to or less than the ending balance
threshold under subparagraph division (b) for the fiscal year
for which assistance is requested.
-41- (b) For purposes of this subparagraph (2), “ending balance
threshold” means the following:
(i) For applications for the fiscal year beginning July 1,
2021, forty percent of the actual expenditures of the mental
health and disability services region for the fiscal year that
commenced two years prior to the fiscal year of application for
assistance.
(ii) For applications for the fiscal year beginning July 1,
2022, twenty percent of the actual expenditures of the mental
health and disability services region for the fiscal year that
commenced two years prior to the fiscal year of application for
assistance.
(iii) For applications for fiscal years beginning on or
after July 1, 2023, five percent of the actual expenditures
of the mental health and disability services region for the
fiscal year that commenced two years prior to the fiscal year
of application for assistance.
d. The department shall review the fiscal year-end financial
records for all mental health and disability services regions
that are granted incentive funds. If the department determines
a mental health and disability services region’s actual need
for incentive funds was less than the amount of incentive funds
granted to the mental health and disability services region,
the mental health and disability services region shall refund
the difference between the amount of assistance granted and
the actual need. The mental health and disability services
region shall submit the refund within thirty days of receiving
notice from the department. Refunds shall be credited to the
incentive fund.
e. The department shall determine application requirements
to ensure prudent use of the incentive fund. The department
may accept or reject an application for incentive funds in
whole or in part. The decision of the department is final.
f. The total amount of incentive funds approved shall be
limited to the amount available in the incentive fund for a
-42-fiscal year. Any unobligated balance in the incentive fund at
the close of a fiscal year shall remain in the incentive fund
for distribution in the succeeding fiscal year.
g. Incentive funds shall only be made available to address
one or more of the following circumstances:
(1) To reimburse regions for reductions in available
funding for core services as the result of the reduction and
elimination of the levy under section 331.424A, Code 2021, if
the region has an operating deficit. The department shall
prioritize approval of incentive funds for the circumstances
specified in this subparagraph.
(2) To incentivize quality core services that meet or exceed
the defined outcomes in the performance-based contract.
(3) To support regional efforts to fund non-core services
that support the defined outcomes of core services in the
performance-based contract.
(4) To support non-core services to maintain an individual
in a community setting or that would create a risk that the
individuals needing services and supports would be placed in
more restrictive, higher-cost settings.
h. Subject to the amount available and obligated from
the incentive fund for a fiscal year, the department shall
annually calculate the amount of moneys due to eligible mental
health and disability services regions in accordance with the
department’s decisions and that amount is appropriated from the
incentive fund to the department for payment of the moneys due.
The department shall distribute incentive funds payable to the
mental health and disability services regions for the amounts
due on or before January 1.
i. On or before March 1 and September 1 of each fiscal
year, the department shall provide the governor’s office and
the general assembly with a report of the financial condition
of the incentive fund. The report shall include but is not
limited to an itemization of the funding source’s balances,
types and amount of revenues credited, and payees and payment
-43-amounts for the expenditures made from the funding source
during the reporting period.
j. If the department has made its decisions but has
determined that there are otherwise qualifying requests for
incentive funds that are beyond the amount available in the
incentive fund for a fiscal year, the department shall compile
a list of such requests and the supporting information for
the requests. The list and information shall be submitted to
the commission, the children’s behavioral health system state
board, and the general assembly.
9. The commission shall consult with regional
administrators and the director in prescribing forms and
adopting rules to administer this section.
Sec. 84. Section 249N.8, subsection 1, Code 2021, is amended
to read as follows:
1. Biennially, a report of the results of a review, by
county and region, of mental health services previously funded
through taxes levied by counties pursuant to section 331.424A,
Code 2021, or funds administered by a mental health and
disability services region that are funded during the reporting
period under the Iowa health and wellness plan.
Sec. 85. Section 331.389, subsection 1, paragraph b, Code
2021, is amended to read as follows:
b. If a county has been exempted prior to July 1, 2014, from
the requirement to enter into a regional service system, the
county and the county’s board of supervisors shall fulfill all
requirements and be eligible as a region under this chapter and
chapter chapters 222, 225, 225C, 226, 227, 229, and 230 for a
regional service system, regional service system management
plan, regional governing board, and regional administrator,
and any other provisions applicable to a region of counties
providing local mental health and disability services.
Additionally, a county exempted under this subsection shall be
considered a region for purposes of chapter 426B.
Sec. 86. Section 331.389, subsection 5, paragraph a,
-44-subparagraph (2), Code 2021, is amended to read as follows:
(2) Reduce the amount of the annual state funding provided
for the regional service system or exempted county, including
amounts received under section 225C.7A, not to exceed fifteen
percent of the amount.
Sec. 87. Section 331.391, subsections 1 and 3, Code 2021,
are amended to read as follows:
1. The funding under the control of the governing board
shall be maintained in a combined account, in separate county
accounts that are under the control of the governing board, or
pursuant to other arrangements authorized by law that limit the
administrative burden of such control while facilitating public
scrutiny of financial processes. A county exempted under
section 331.389, subsection 1, shall maintain a county mental
health and disability services fund for the deposit of funding
received under section 225C.7A and appropriations specifically
authorized to be made from the county mental health and
disability services fund shall not be made from any other fund
of the county. A county mental health and disability services
fund established by an exempt county, to the extent feasible,
shall be considered to be the same as a region combined account
and shall be subject to the same requirements as a region’s
combined account.
3. The funding provided pursuant to appropriations from the
mental health and disability services regional services service
fund created in section 225C.7A and from performance-based
contracts with the department shall be credited to the account
or accounts under the control of the governing board.
Sec. 88. Section 331.391, subsection 4, paragraphs a, b, and
c, Code 2021, are amended to read as follows:
a. If a region is meeting the financial obligations for
implementation of its regional service system management plan
for a fiscal year and residual funding is anticipated, the
regional administrator shall may reserve an adequate amount of
unobligated and unencumbered funds for cash flow of expenditure
-45-obligations in the next fiscal year.
b. Each region shall certify to the department of management
human services on or before December 1, 2022 2021, and each
December 1 thereafter, the amount of the region’s cash flow
amount in the combined account that is attributable to each
county within the region based upon each county’s proportionate
amount of funding and contributions to the region or other
methodology specified in the regional governance agreement
or certify the cash flow amount for each separate county
account that is under the control of the governing board at the
conclusion of the most recently completed fiscal year.
c. For fiscal years beginning on or after July 1, 2023,
the region’s cash flow amount, either reserved in the region’s
combined account or reserved among all separate county accounts
under the control of the governing board, shall not exceed
forty five percent of the gross actual expenditures from the
combined account or from all separate county accounts under
control of the governing board for the fiscal year preceding
the fiscal year in progress.
Sec. 89. Section 331.392, subsection 4, paragraph a, Code
2021, is amended to read as follows:
a. Methods for pooling, management, and expenditure of the
funding under the control of the regional administrator. If
the agreement does not provide for pooling of the participating
county moneys in a single fund, the agreement shall specify how
the participating county moneys will be subject to the control
of the regional administrator.
Sec. 90. Section 331.393, subsection 10, Code 2021, is
amended to read as follows:
10. The director’s approval of a regional plan shall not be
construed to constitute certification of the respective county
budgets or of the region’s budget.
Sec. 91. Section 331.394, subsection 4, Code 2021, is
amended to read as follows:
4. If a county of residence is part of a mental health and
-46-disability services region that has agreed to pool funding and
liability for services, the The responsibilities of the county
under law regarding such mental health and disability services
shall be performed on behalf of the county by the regional
administrator. The county of residence or the county’s mental
health and disability services region, as applicable, is
responsible for paying the public costs of the mental health
and disability services that are not covered by the medical
assistance program under chapter 249A and are provided in
accordance with the region’s approved service management plan
to persons who are residents of the county or region.
Sec. 92. Section 331.398, subsection 1, Code 2021, is
amended to read as follows:
1. The financing of a regional mental health and disability
service system is limited to a fixed budget amount. The fixed
budget amount shall be the amount identified in a regional
service system management plan and budget for the fiscal year.
A region shall receive state funding for growth in non-Medicaid
expenditures through the mental health and disability regional
services fund created in section 225C.7A to address increased
service costs, additional service populations, additional core
service domains, and increased numbers of persons receiving
services.
Sec. 93. NEW SECTION. 331.400 Quarterly reports.
Beginning with the fiscal year, beginning July 1, 2022,
the department shall deliver on a quarterly basis a report to
the general assembly that provides a summary of the status of
implementing core services in each region, the accessibility
of core services in each region, how each region is using the
funding provided under section 225C.7A, and recommendations
for improvements to the mental health and disability services
system in order to attain the outcome improvement goals set
by the department consistent with the goals specified in the
performance-based contracts under section 225C.7A, subsection
2, paragraph “c”, subparagraph (5).
-47- Sec. 94. Section 331.424A, subsection 1, paragraph b, Code
2021, is amended by striking the paragraph.
Sec. 95. Section 331.424A, subsection 3, Code 2021, is
amended to read as follows:
3. a. County revenues from taxes and other sources
designated by a county for mental health and disabilities
services shall be credited to the county mental health and
disabilities services fund which shall be created by the
county. The Until the required transfer of funds under
paragraph “b”, the board shall make appropriations from the fund
for payment of services provided under the regional service
system management plan approved pursuant to section 331.393.
The For fiscal years beginning before July 1, 2022, the county
may pay for the services in cooperation with other counties
by pooling appropriations from the county services fund with
appropriations from the county services fund of other counties
through the county’s regional administrator, or through another
arrangement specified in the regional governance agreement
entered into by the county under section 331.392.
b. Notwithstanding section 331.432, subsection 3, upon
conclusion of the fiscal year beginning July 1, 2021, except
for an exempt county under section 331.391, subsection 1,
the county treasurer shall transfer the remaining balance of
the county’s county services fund created under paragraph
“a”, including all unobligated and unencumbered funds, to the
county’s region to which the county belongs in the fiscal year
beginning July 1, 2022, for deposit in the region’s combined
account under section 331.391.
Sec. 96. Section 331.424A, subsection 4, paragraph a, Code
2021, is amended to read as follows:
a. An amount of unobligated and unencumbered funds, as
specified in the regional governance agreement entered into
by the county under section 331.392, shall, for fiscal years
beginning before July 1, 2022, be reserved in the county
services fund to address cash flow obligations in the next
-48-fiscal year, subject to the limitations of this subsection.
Sec. 97. Section 331.424A, subsection 4, paragraphs c and d,
Code 2021, are amended by striking the paragraphs.
Sec. 98. Section 331.424A, subsections 5, 6, and 9, Code
2021, are amended to read as follows:
5. Receipts from the state or federal government for fiscal
years beginning before July 1, 2022, for the mental health
and disability services administered or paid for by a county
shall be credited to the county services fund, including moneys
distributed to the county from the department of human services
and moneys allocated under chapter 426B.
6. For each fiscal year beginning before July 1, 2022, the
county shall certify a levy for payment of services. For each
such fiscal year, county revenues from taxes imposed by the
county credited to the county services fund shall not exceed an
amount equal to the county budgeted amount for the fiscal year.
A levy certified under this section is not subject to the
appeal provisions of section 331.426or to any other provision
in law authorizing a county to exceed, increase, or appeal a
property tax levy limit.
9. a. For the fiscal year beginning July 1, 2017, and
each subsequent fiscal year beginning before July 1, 2022, the
county budgeted amount determined for each county shall be the
amount necessary to meet the county’s financial obligations for
the payment of services provided under the regional service
system management plan approved pursuant to section 331.393,
not to exceed an amount equal to the product of the regional
per capita expenditure target amount twenty-one dollars and
fourteen cents multiplied by the county’s population, and, for
fiscal years beginning on or after July 1, 2023, reduced by
the amount of the county’s cash flow reduction amount for the
fiscal year calculated under subsection 4, if applicable.
b. If a county officially joins a different region, the
county’s budgeted amount for a fiscal year beginning before
July 1, 2022, shall be the amount necessary to meet the
-49-county’s financial obligations for payment of services provided
under the new region’s regional service system management plan
approved pursuant to section 331.393, not to exceed an amount
equal to the product of the new region’s regional per capita
expenditure target amount twenty-one dollars and fourteen cents
multiplied by the county’s population, and, for fiscal years
beginning on or after July 1, 2023, reduced by the amount of
the county’s cash flow reduction amount for the fiscal year
calculated under subsection 4, if applicable.
Sec. 99. Section 331.424A, Code 2021, is amended by adding
the following new subsection:
NEW SUBSECTION. 10. This section is repealed July 1, 2022.
Sec. 100. Section 331.432, subsection 3, Code 2021, is
amended to read as follows:
3. a. Except as authorized in section 331.477, transfers
of moneys between the county services fund created pursuant
to section 331.424A and any other fund are prohibited. This
subsection paragraph does not apply to appropriations made or
the value of in-kind care and treatment provided pursuant to
section 347.7, subsection 1, paragraph “c”, Code 2021, or to
transfers from a county public hospital fund under section
347.7. This paragraph is repealed July 1, 2022.
b. Payments or transfers of moneys from any fund of the
county to a mental health and disability services region’s
combined account under section 331.391 are prohibited. This
paragraph applies to fiscal years beginning on or after July
1, 2022, but does not apply to transfers from a county public
hospital fund under section 347.7 for the fiscal year beginning
July 1, 2022, or the fiscal year beginning July 1, 2023.
Sec. 101. Section 347.7, subsection 1, paragraph c, Code
2021, is amended by striking the paragraph.
Sec. 102. Section 426B.1, subsection 2, Code 2021, is
amended to read as follows:
2. Moneys shall be distributed from the property tax relief
fund to counties for the mental health and disability regional
-50-service system for mental health and disabilities services, in
accordance with the appropriations made to the fund and other
statutory requirements.
Sec. 103. Section 426B.2, Code 2021, is amended to read as
follows:
426B.2 Property tax relief fund payments.
The director of human services shall draw warrants on the
property tax relief fund, payable to the county treasurer
regional administrator in the amount due to a county mental
health and disability services region in accordance with
statutory requirements, and mail the warrants to the county
auditors regional administrator in July and January of each
year.
Sec. 104. Section 426B.4, Code 2021, is amended to read as
follows:
426B.4 Rules.
The mental health and disability services commission shall
consult with county representatives regional administrators
and the director of human services in prescribing forms and
adopting rules pursuant to chapter 17A to administer this
chapter.
Sec. 105. ADJUSTMENT TO PROPERTY TAXES CERTIFIED UNDER
SECTION 331.424A — FY 2021-2022. For each county for which
the amount of taxes certified for levy for the purposes
of section 331.424A for the fiscal year beginning July 1,
2021, exceeds the product of the population of the county as
determined under section 331.424A, subsection 1, paragraph
“e”, multiplied by twenty-one dollars and fourteen cents,
the department of management shall reduce the amount of such
taxes certified for levy to an amount not to exceed the
product of the population of the county as determined under
section 331.424A, subsection 1, paragraph “e”, multiplied by
twenty-one dollars and fourteen cents and shall revise the rate
of taxation as necessary to raise the reduced amount. The
department of management shall report the reduction in the
-51-certified taxes and the revised rate of taxation to the county
auditors by June 15, 2021.
Sec. 106. IMPLEMENTATION OF REGION INCENTIVE FUND UNDER
SECTION 225C.7A — EMERGENCY RULEMAKING.
1. In order to timely implement the provisions of this
division of this Act establishing the region incentive fund
under section 225C.7A, subsection 8, for mental health and
disability services regions for funding the fiscal year
beginning July 1, 2021, and the fiscal year beginning July
1, 2022, the director of human services shall establish
alternative application deadlines and expedited application
review and approval timelines.
2. The department of human services may adopt
administrative rules under section 17A.4, subsection 3, and
section 17A.5, subsection 2, paragraph “b”, to implement
provisions of this division of this Act and the rules shall
become effective immediately upon filing or on a later
effective date specified in the rules, unless the effective
date of the rules is delayed or the applicability of the rules
is suspended by the administrative rules review committee. Any
rules adopted in accordance with this section shall not take
effect before the rules are reviewed by the administrative
rules review committee. The delay authority provided to
the administrative rules review committee under section
17A.8, subsections 9 and 10, shall be applicable to a delay
imposed under this section, notwithstanding a provision in
those subsections making them inapplicable to section 17A.5,
subsection 2, paragraph “b”. Any rules adopted in accordance
with the provisions of this section shall also be published as
a notice of intended action as provided in section 17A.4.
Sec. 107. DEPARTMENT OF HUMAN SERVICES — MENTAL HEALTH AND
DISABILITY REGIONS STUDY. The department of human services
shall convene a study committee to evaluate the current mental
health and disability region structure and operations in the
context of the changes made and the funding provided by this
-52-division of this Act. The study shall, at a minimum, review
how effectively each mental health and disability services
region has implemented the core services outlined in sections
331.397 and 331.397A, including the degree of uniformity of
the core services between the regions. The department shall
be authorized to contract with and retain the services of an
independent contractor in order to conduct the study. The
department shall submit a report detailing the study’s findings
and recommendations to the general assembly and the governor no
later than December 15, 2022.
Sec. 108. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
DIVISION XXVI
COMMERCIAL AND INDUSTRIAL PROPERTY TAX REPLACEMENT PAYMENTS
Sec. 109. Section 2.48, subsection 3, paragraph f,
subparagraph (6), Code 2021, is amended by striking the
subparagraph.
Sec. 110. Section 331.512, subsection 15, Code 2021, is
amended by striking the subsection.
Sec. 111. Section 331.559, subsection 27, Code 2021, is
amended by striking the subsection.
Sec. 112. Section 441.21A, subsection 1, paragraph a, Code
2021, is amended to read as follows:
a. For each fiscal year beginning on or after July 1, 2014,
but before July 1, 2029, there is appropriated from the general
fund of the state to the department of revenue an amount
necessary for the payment of all commercial and industrial
property tax replacement claims under this section for the
fiscal year. However, for a the fiscal year years beginning
on or after July 1, 2017, July 1, 2018, July 1, 2019, July 1,
2020, and July 1, 2021, the total amount of moneys appropriated
from the general fund of the state to the department of revenue
for the payment of commercial and industrial property tax
replacement claims in that each fiscal year shall not exceed
the total amount of money necessary to pay all commercial and
-53-industrial property tax replacement claims for the fiscal year
beginning July 1, 2016.
Sec. 113. Section 441.21A, subsections 2 and 3, Code 2021,
are amended to read as follows:
2. a. Beginning with the For each fiscal year beginning
on or after July 1, 2014, but before July 1, 2022, each county
treasurer shall be paid by the department of revenue an
amount equal to the amount of the commercial and industrial
property tax replacement claims in the county, as calculated
in subsection 4. If an amount appropriated for a the fiscal
year beginning on July 1, 2017, July 1, 2018, July 1, 2019,
July 1, 2020, or July 1, 2021, is insufficient to pay all
replacement claims for the fiscal year, the director of revenue
shall prorate the payment of replacement claims to the county
treasurers and shall notify the county auditors of the pro rata
percentage on or before September 30.
b. For each fiscal year beginning on or after July 1, 2022,
but before July 1, 2029, each county treasurer shall be paid
by the department of revenue an amount equal to the sum of the
commercial and industrial property tax replacement claims for
all taxing authorities, or portion thereof, located in the
county, as calculated in subsection 4A. The county treasurer
shall pay to each taxing authority the taxing authority’s
commercial and industrial property tax replacement claim, or
portion thereof, as calculated in subsection 4A.
3. a. On or before July 1 of each fiscal year beginning on
or after July 1, 2014, but before July 1, 2022, the assessor
shall report to the county auditor the total actual value of
all commercial property and industrial property in the county
that is subject to assessment and taxation for the assessment
year used to calculate the taxes due and payable in that fiscal
year.
b. On or before July 1, 2022, the department of management
shall calculate and report to the department of revenue for
each taxing authority in this state that is a city or a county
-54-all of the following:
(1) The total assessed value as of January 1, 2012, of
all taxable property located in the taxing authority that is
subject to assessment and taxation used to calculate taxes
which are due and payable in the fiscal year beginning July 1,
2013, excluding property subject to the statewide property tax
imposed under section 437A.18 or 437B.14.
(2) The total assessed value as of January 1, 2019, of
all taxable property located in the taxing authority that is
subject to assessment and taxation used to calculate taxes
which are due and payable in the fiscal year beginning July 1,
2020, excluding property subject to the statewide property tax
imposed under section 437A.18 or 437B.14.
Sec. 114. Section 441.21A, subsection 4, unnumbered
paragraph 1, Code 2021, is amended to read as follows:
On or before a date established by rule of the department
of revenue of each fiscal year beginning on or after July
1, 2014, but before July 1, 2022, the county auditor shall
prepare a statement, based upon the report received pursuant to
subsection 3, paragraph “a”, listing for each taxing district
in the county:
Sec. 115. Section 441.21A, Code 2021, is amended by adding
the following new subsection:
NEW SUBSECTION. 4A. a. As used in this subsection, unless
the context clearly requires otherwise:
(1) “Qualified taxing authority” means any of the following:
(a) A taxing authority that is not a city or a county.
(b) A taxing authority that is a city or county for which
the amount determined under subsection 3, paragraph “b”,
subparagraph (2), is less than one hundred thirty-one and
twenty-four hundredths percent of the amount determined under
subsection 3, paragraph “b”, subparagraph (1).
(2) “Taxing authority” means a city, county, community
college, or other governmental entity or political subdivision
in this state authorized to certify a levy on property located
-55-within such authority, but does not include a school district.
b. For fiscal years beginning on or after July 1, 2022,
but before July 1, 2029, the amount of each taxing authority’s
replacement claim is as follows:
(1) If the taxing authority is a qualified taxing authority:
(a) For the fiscal year beginning July 1, 2022,
seven-eighths of the amount received by the taxing authority
under this section for the fiscal year beginning July 1, 2021.
(b) For the fiscal year beginning July 1, 2023, six-eighths
of the amount received by the taxing authority under this
section for the fiscal year beginning July 1, 2021.
(c) For the fiscal year beginning July 1, 2024, five-eighths
of the amount received by the taxing authority under this
section for the fiscal year beginning July 1, 2021.
(d) For the fiscal year beginning July 1, 2025, four-eighths
of the amount received by the taxing authority under this
section for the fiscal year beginning July 1, 2021.
(e) For the fiscal year beginning July 1, 2026,
three-eighths of the amount received by the taxing authority
under this section for the fiscal year beginning July 1, 2021.
(f) For the fiscal year beginning July 1, 2027, two-eighths
of the amount received by the taxing authority under this
section for the fiscal year beginning July 1, 2021.
(g) For the fiscal year beginning July 1, 2028, one-eighth
of the amount received by the taxing authority under this
section for the fiscal year beginning July 1, 2021.
(2) If the taxing authority is not a qualified taxing
authority:
(a) For the fiscal year beginning July 1, 2022, four-fifths
of the amount received by the taxing authority under this
section for the fiscal year beginning July 1, 2021.
(b) For the fiscal year beginning July 1, 2023, three-fifths
of the amount received by the taxing authority under this
section for the fiscal year beginning July 1, 2021.
(c) For the fiscal year beginning July 1, 2024, two-fifths
-56-of the amount received by the taxing authority under this
section for the fiscal year beginning July 1, 2021.
(d) For the fiscal year beginning July 1, 2025, one-fifth of
the amount received by the taxing authority under this section
for the fiscal year beginning July 1, 2021.
(e) For the fiscal year beginning July 1, 2026, and each
succeeding fiscal year beginning before July 1, 2029, zero.
(3) The department of management shall calculate and report
to the department of revenue the amount received by each
taxing authority in this state as the result of commercial and
industrial property tax replacement claims paid for the fiscal
year beginning July 1, 2021, and the portion of the amount
attributable to each county where the taxing authority is
located, if applicable.
Sec. 116. Section 441.21A, subsection 5, Code 2021, is
amended to read as follows:
5. For purposes of computing replacement amounts under
this section for fiscal years beginning on or after July 1,
2014, but before July 1, 2022, that portion of an urban renewal
area defined as the sum of the assessed valuations defined in
section 403.19, subsections 1 and 2, shall be considered a
taxing district.
Sec. 117. Section 441.21A, subsection 6, paragraph a, Code
2021, is amended to read as follows:
a. The For fiscal years beginning on or after July 1, 2014,
but before July 1, 2022, the county auditor shall certify
and forward one copy of the statement to the department of
revenue not later than a date of each year established by the
department of revenue by rule.
Sec. 118. Section 441.21A, subsection 6, Code 2021, is
amended by adding the following new paragraph:
NEW PARAGRAPH. f. This subsection shall apply to the
apportionment of replacement claim amounts for fiscal years
beginning on or after July 1, 2014, but before July 1, 2022.
Sec. 119. Section 441.21A, Code 2021, is amended by adding
-57-the following new subsections:
NEW SUBSECTION. 7. a. For fiscal years beginning on
or after July 1, 2022, but before July 1, 2029, each taxing
authority’s replacement claim calculated under subsection 4A,
or portion thereof, shall be paid to the appropriate county
treasurer, as provided in subsection 2, paragraph “b”, in equal
installments in September and March of each year.
b. After payment by the county treasurer to the taxing
authority, the taxing authority’s replacement claim shall be
apportioned and credited by the governing body of the taxing
authority among the taxing authority’s tax levies in the same
proportion that each property tax levy bears to the total of
all property tax levies imposed by the taxing authority for the
fiscal year for which the payment is received.
c. Of the amounts allocated and credited to each property
tax levy that is subject to division under section 403.19,
the total amount paid into the fund for the taxing authority
as taxes by or for the taxing authority into which all other
property taxes are paid and the special fund of the applicable
municipality under section 403.19, subsection 2, shall be an
amount of the replacement claim that is proportionate to the
amount of the total sum of the assessed value of the taxable
commercial and industrial property in the urban renewal area as
a share of total assessed value of all taxable property in the
taxing authority and shall be apportioned as follows:
(1) To the fund for the taxing authority as taxes by or for
the taxing authority into which all other property taxes are
paid, an amount proportionate to the amount of actual value of
the commercial and industrial property in the urban renewal
area as determined in section 403.19, subsection 1, that was
subtracted pursuant to section 403.20, as it bears to the
total amount of actual value of the commercial and industrial
property in the urban renewal area that was subtracted pursuant
to section 403.20 for the assessment year for property taxes
due and payable in the fiscal year for which the replacement
-58-claim is computed.
(2) (a) To the special fund of the applicable municipality
under section 403.19, subsection 2, the remaining amount, if
any.
(b) The amount allocated under subparagraph division (a)
shall not exceed the amount equal to the amount certified to
the county auditor under section 403.19 for the fiscal year in
which the claim is paid, after deduction of the amount of other
revenues committed for payment on that amount for the fiscal
year. The amount not allocated as a result of the operation of
this subparagraph division (b) shall be allocated to and paid
into the fund for the taxing authority as taxes by or for the
taxing authority in the manner provided in subparagraph (1).
NEW SUBSECTION. 8. This section is repealed July 1, 2029.
Sec. 120. EFFECTIVE DATE. The following take effect July
1, 2029:
1. The section of this division of this Act amending section
331.512.
2. The section of this division of this Act amending section
331.559.
DIVISION XXVII
SCHOOL FOUNDATION PERCENTAGE
Sec. 121. Section 257.1, subsection 2, paragraph b, Code
2021, is amended to read as follows:
b. For the budget year commencing July 1, 1999, and for
each succeeding budget year beginning before July 1, 2022,
the regular program foundation base per pupil is eighty-seven
and five-tenths percent of the regular program state cost per
pupil. For the budget year commencing July 1, 2022, and for
each succeeding budget year, the regular program foundation
base per pupil is eighty-eight and four-tenths percent of the
regular program state cost per pupil. For the budget year
commencing July 1, 1991, and for each succeeding budget year
the special education support services foundation base is
seventy-nine percent of the special education support services
-59-state cost per pupil. The combined foundation base is the sum
of the regular program foundation base, the special education
support services foundation base, the total teacher salary
supplement district cost, the total professional development
supplement district cost, the total early intervention
supplement district cost, the total teacher leadership
supplement district cost, the total area education agency
teacher salary supplement district cost, and the total area
education agency professional development supplement district
cost.
Sec. 122. Section 257.3, subsection 1, paragraph d, Code
2021, is amended by striking the paragraph.
Sec. 123. EFFECTIVE DATE. The section of this division of
this Act amending section 257.3, subsection 1, paragraph “d”,
takes effect July 1, 2022.
DIVISION XXVIII
ELDERLY PROPERTY TAX CREDIT
Sec. 124. Section 25B.7, subsection 2, paragraph b, Code
2021, is amended to read as follows:
b. Low-income property tax credit and elderly and disabled
property tax credit pursuant to sections 425.16 through 425.40,
subject to the limitation of section 425.39, subsection 1,
paragraph “b”.
Sec. 125. Section 425.17, subsection 2, Code 2021, is
amended to read as follows:
2. a. “Claimant” means either any of the following:
(1) A person filing a claim for credit or reimbursement
under this subchapter who has attained the age of sixty-five
years but who has not attained the age of seventy years on
or before December 31 of the base year or, a person filing a
claim for credit or reimbursement under this subchapter who
is totally disabled and was totally disabled on or before
December 31 of the base year, or a person filing a claim for
reimbursement under this subchapter who has attained the age of
sixty-five years on or before December 31 of the base year and
-60- who is domiciled in this state at the time the claim is filed or
at the time of the person’s death in the case of a claim filed
by the executor or administrator of the claimant’s estate.
(2) A person filing a claim for credit or reimbursement
under this subchapter who has attained the age of twenty-three
years on or before December 31 of the base year or was a head
of household on December 31 of the base year, as defined in
the Internal Revenue Code, but has not attained the age or
disability status described in this paragraph “a”, subparagraph
(1) or the age status and eligibility criteria of subparagraph
(3), and is domiciled in this state at the time the claim is
filed or at the time of the person’s death in the case of a
claim filed by the executor or administrator of the claimant’s
estate, and was not claimed as a dependent on any other
person’s tax return for the base year.
(3) A person filing a claim for credit under this subchapter
who has attained the age of seventy years on or before December
31 of the base year, who has a household income of less than
two hundred fifty percent of the federal poverty level, as
defined by the most recently revised poverty income guidelines
published by the United States department of health and human
services, and is domiciled in this state at the time the claim
is filed or at the time of the person’s death in the case of a
claim filed by the executor or administrator of the claimant’s
estate.
b. “Claimant” under paragraph “a”, subparagraph (1) or(2),
includes a vendee in possession under a contract for deed and
may include one or more joint tenants or tenants in common.
In the case of a claim for rent constituting property taxes
paid, the claimant shall have rented the property during any
part of the base year. In the case of a claim for property
taxes due, the claimant shall have occupied the property during
any part of the fiscal year beginning July 1 of the base year.
If a homestead is occupied by two or more persons, and more
than one person is able to qualify as a claimant, the persons
-61-may each file a claim based upon each person’s income and rent
constituting property taxes paid or property taxes due.
Sec. 126. Section 425.23, subsection 1, paragraph a,
unnumbered paragraph 1, Code 2021, is amended to read as
follows:
The tentative credit or reimbursement for a claimant
described in section 425.17, subsection 2, paragraph “a”,
subparagraphs subparagraph (1) and (2), if no appropriation is
made to the fund created in section 425.40 shall be determined
in accordance with the following schedule:
Sec. 127. Section 425.23, subsection 1, Code 2021, is
amended by adding the following new paragraph:
NEW PARAGRAPH. c. The tentative credit for a claimant
described in section 425.17, subsection 2, paragraph “a”,
subparagraph (3), shall be the greater of the following:
(1) The amount of the credit under the schedule specified
in paragraph “a” of this subsection as if the claimant was a
claimant as defined in section 425.17, subsection 2, paragraph
“a”, subparagraph (1), filing for a credit under paragraph “a”
of this subsection.
(2) The difference between the actual amount of property
taxes due on the homestead during the fiscal year next
following the base year minus the actual amount of property
taxes due on the homestead during the first fiscal year for
which the claimant filed a claim for a credit calculated under
this paragraph “c” and for which the property taxes due on the
homestead were calculated on an assessed valuation that was
not a partial assessment and if the claimant has filed for the
credit calculated under this paragraph “c” for each of the
subsequent fiscal years after the first credit claimed.
Sec. 128. Section 425.23, subsection 4, paragraph a, Code
2021, is amended to read as follows:
a. For the base year beginning in the 1999 calendar year
and for each subsequent base year, the dollar amounts set
forth in subsections subsection 1, paragraphs “a” and “b”, and
-62- subsection 3 shall be multiplied by the cumulative adjustment
factor for that base year. “Cumulative adjustment factor” means
the product of the annual adjustment factor for the 1998 base
year and all annual adjustment factors for subsequent base
years. The cumulative adjustment factor applies to the base
year beginning in the calendar year for which the latest annual
adjustment factor has been determined.
Sec. 129. Section 425.24, Code 2021, is amended to read as
follows:
425.24 Maximum property tax for purpose of credit or
reimbursement.
In For claimants under section 425.17, subsection 2,
paragraph “a”, subparagraphs (1) and (2), and for the
calculation under section 425.23, subsection 1, paragraph “c”,
subparagraph (1), in any case in which property taxes due or
rent constituting property taxes paid for any household exceeds
one thousand dollars, the amount of property taxes due or rent
constituting property taxes paid shall be deemed to have been
one thousand dollars for purposes of this subchapter.
Sec. 130. Section 425.39, subsection 1, as amended by 2021
Iowa Acts, House File 368, section 33, is amended to read as
follows:
1. a. The elderly and disabled property tax credit fund is
created. There is appropriated annually from the general fund
of the state to the department of revenue to be credited to the
elderly and disabled property tax credit fund, from funds not
otherwise appropriated, an amount sufficient to implement this
subchapter for credits for property taxes due for claimants
described in section 425.17, subsection 2, paragraph “a”,
subparagraph subparagraphs (1) and (3), subject to paragraph
“b”.
b. Regardless of the amount of the credit determined under
section 425.23, subsection 1, paragraph “c”, the amount paid by
the director of revenue to each county treasurer for credits
for claimants described under section 425.17, subsection 2,
-63-paragraph “a”, subparagraph (3), shall not exceed the amount
calculated for the claimant under section 425.23, subsection 1,
paragraph “c”, subparagraph (1), and section 25B.7, subsection
1, shall not apply to the amount of the credit in excess of the
amount paid by the director of revenue.
Sec. 131. APPLICABILITY. This division of this Act applies
to claims under chapter 425, subchapter II, filed on or after
January 1, 2022.
-64-______________________________
JAKE CHAPMANPresident of the Senate______________________________
PAT GRASSLEYSpeaker of the House I hereby certify that this bill originated in the Senate and is known as Senate File 619, Eighty-ninth General Assembly.______________________________
W. CHARLES SMITHSONSecretary of the SenateApproved _______________, 2021______________________________
KIM REYNOLDSGovernorjm/jh/mb/mb