SF 457 – Criminal Surcharge and Court fees

SF 457 relates to surcharges added to criminal penalties, court funds, civil fees, misdemeanors and felony fines. The bill does the following:

• Increases numerous scheduled fines and non-scheduled fines for simple misdemeanors, serious misdemeanors, aggravated misdemeanors, “D” felonies and “C” felonies.
• Reduces the criminal surcharge that is added to all criminal fines from 35% to 15%.
• Removes a number of surcharges that are added to fines for certain crimes.
• Increases certain civil filing fees.
• Deposits increased fines and civil filing fees into the General Fund.
• Distributes crime services surcharges to specified purposes.
• Makes changes to Iowa’s Court Debt Collection system.
• Changes the definition of restitution relating to costs owed by a defendant and specifies which restitution is subject to a defendant’s ability to pay and which is required.
• Increases funding the Judicial Branch may deposit in the Court Technology and Modernization fund.
• Creates an “Iowa Emergency Food Purchase Program Fund” to be administered by the Department of Agriculture and Land Stewardship.
  [6/13: 47-0 (Excused: Greene, Hogg, Lykam)]

SF 2144 – FY20 Supplemental

SF 2144 provides for two appropriations from FY20 General Fund. One is for $300,000 to the Department of Human Resources (DHS) for the Glenwood Resource Center. It will be used for additional staff training, expert consultation and review of patient treatment. DHS must report how the money was used to the Legislature.

The other appropriation provides $21 million ($20,003,186) to the Flood Recovery Fund at the Department of Homeland Security and Emergency Management. The Fund was established in SF 638 (Standings bill) in 2019. The Republicans created the fund and appropriated $15 million to it in 2019, which was a supplemental appropriation from FY19 money. All $15 million has been awarded. There are 35 projects of interest that have been submitted to the Flood Mitigation Board, totaling $164 million. This reflects the full estimated cost of the projects (the actual amount could be lower due to federal contributions to the projects).

The money is awarded by the Flood Mitigation Board to political subdivisions located within counties designated Presidential Disaster Areas (DR-4421-IA) and also located within a county where the Federal Emergency Management Agency’s Individual Assistance Program has been activated. Ten counties meet the criteria: Fremont, Harrison, Louisa, Mills, Monona, Muscatine, Pottawattamie, Scott, Shelby and Woodbury.
[2/12: 48-0 (Excused: Feenstra, Rozenboom)]

SF 2164 – Per-pupil and transportation equity

SF 2164 addresses the school aid state cost per pupil (SCPP) versus the district cost per pupil (DCPP) and transportation equity.

The per-pupil equity provides an additional $10 per student for some school districts on top of the state supplemental aid for the upcoming budget year. This equates to an additional $5.9 million for schools in FY21.

It is estimated that 195 school districts will receive additional funding, of which 177 will see the full $10 increase to their state cost per pupil. This is new money for those schools.

The rest of the school districts will get a small property tax decrease, because $10 of their current DCPP will be paid for by additional state dollars. These districts won’t see “new” money under this portion of this bill.

With this bill, the difference in SCPP and DCPP is a maximum of $155. Five districts are at that amount.

The transportation equity portion of the bill provides an additional $7.3 million to the Transportation Equity Fund for a total of $26 million in FY 21. This builds upon last year’s $19 million investment. If a school district exceeds the statewide transportation cost per pupil, it will receive a payment. An estimated 204 school districts will receive funding to buy them down to the statewide average in FY21.

With this bill, all schools will be at the statewide transportation per pupil average. In addition, the bill directs transportation funding to grow by the Categorical SSA percentage starting in FY21. This means an additional $400,000 will be generated through the school aid formula and the cost for FY21 SSA will increase by that $400,000. Since all schools are now at statewide average, that $400,000 will be divided between all schools.
[2/10: 48-0 (Excused: Nunn, T. Taylor)]

SF 2360 – Classroom Management and Therapeutic Classrooms

SF 2360 addresses concerns from some parents and teachers regarding at-need students and the increased use of “room clears” in response to violent behavior. In a room clear, students are evacuated from the classroom while a violent or disruptive child remains in the classroom. The bill has these main components:

• Teacher Training and Preparation: Provides $500,000 starting in 2021-22 school year for educators to receive additional training to manage classroom disruptions, address student behavior and use the least restrictive environment. 
• Therapeutic Classroom Funding: Therapeutic classrooms provide smaller classes, intensive help, and short-term breaks to help students reset and develop new coping strategies before reentering their regular classroom.
  • Provides $1,582,650 starting in 2021-22 school year for grants for districts and community mental health agencies to help students with violent behavior. Schools may collaborate and apply for a regional therapeutic classroom model. The Iowa Department of Education estimates the funding will cover 150 seats.
  • An additional $500,000 starting in 2022-23 school year will reimburse schools for transportation costs to a regional therapeutic classroom. Grants will help establish therapeutic classrooms for one to five pupils, classrooms with six to 10 pupils, and classrooms with 11 to 15 pupils.
• Classroom Clear Requirements: Provides statewide expectations for clearing a classroom when a student behaves violently, and increases the requirements for school communication with parents of all children affected by a room clear.
• Data Collection: Establishes data reporting to track incidents of violence or assault by students, in compliance with federal special education and data privacy laws, and to track key student demographic information to identify overuse or patterns that have a disproportionate racial, gender or social-economic impact.
  [6/11: 48-1 (No: Celsi; Excused: Hogg)]

SF 2398 – Veterinary Loan Repayment Program

SF 2398 establishes a Rural Veterinarian Loan Repayment Program in the College Student Aid Commission, as well as a Rural Veterinary Care Trust Fund. The program provides loan repayment for those who practice as licensed veterinarians in “rural service commitment areas” or “veterinary shortage areas” for four years. Other details include:

• “Rural service commitment area” means a city in Iowa with a population of less than 26,000 located more than 20 miles from a city with a population of 50,000 or more, and which provides a dollar contribution equivalent to 12.5% of the veterinarian’s total eligible loan amount upon graduation for deposit in the Rural Veterinary Care Trust Fund.
• “Veterinary shortage area” refers to a designated veterinary service shortage situation in Iowa identified and nominated by the State Veterinarian or recommended for designation in accordance with federal National Veterinary Medical Services Act.
• An individual is eligible to apply if any of these requirements are met: 1) Enrolled in the final year of a veterinary degree program at a College of Veterinary Medicine accredited by the American Veterinary Medical Association Council on Education; 2) Is a veterinarian licensed pursuant to Chapter 169 within five years of applying for this program with a veterinary medicine degree.
• Priority is given to applicants who graduated from a high school in Iowa or completed private instruction under Chapter 299A (home school). When possible, the commission will enter into agreements with individuals with this priority order:
  • Private practice food supply (livestock) veterinary medicine in any veterinary shortage area.
  • Private practice food supply veterinary medicine in a city with a population of less than 26,00 that is located more than 20 miles form a city with a population of 50,000 or more, especially in remote or economically depressed rural areas.
  • Animal veterinary medicine in a rural service commitment area.
  • The College Student Aid Commission may consult with the State Veterinarian to determine prioritization. 
• Disbursements for loan repayments cannot exceed $15,000 annually. Payments cannot exceed the four consecutive years of practice and cannot exceed a total $60,000 or the amount of outstanding eligible loans, whichever amount is less. Subject to the availability of funding, the Commissioner will enter into at least five program agreements annually. There is no funding in the bill.
  [6/4: 49-0 (Excused: Hogg)]

SF 2400 – Empower Rural Iowa Broadband Grant program

SF 2400 addresses broadband service under the Office of Chief Information Officer (OCIO), the Empower Rural Iowa Broadband Grant Fund and certain broadband infrastructure tax exemptions.

OCIO will use different speed standards for mapping and for grant awards. In mapping, eligibility is based on whether a provider facilitates 25/3 or faster service in a U.S. Census block. Grant eligibility for varying funding levels is determined by different speed thresholds the provider promises to facilitate.

It implements a tiered award system, increasing the percentage of funding an applicant may seek and be awarded depending on buildout speeds. Projects that provide levels greater than or equal to 100 mbps download and 20 mbps upload may receive up to 50% in grant funds. Projects that provide lower speeds may receive up to 35% in grant funds.

The OCIO may award up to 50% for installation projects that facilitate broadband service with a minimum of 100 mbs download speed and 20mbs upload speed at the beginning of the fiscal year. However, if the requested amount for these projects is less than the amount reserved, the office may award the difference between the tiers for the same fiscal year.

The bill makes conforming changes to the name: from the Connecting Iowa Farms, Schools and Communities Broadband Grant Fund to the Empower Rural Iowa Broadband Grant Fund. A Code change allows the OCIO to use fund to pay costs and expenses associated with the administration and operation of the grant program, which is capped at 1% at the beginning of the fiscal year. The OCIO must provide technical assistance to communications service providers for grant applications.

The OCIO may provide grants of federal money obtained because of the public health disaster emergency starting March 17, 2020, to communications service providers to install broadband infrastructure or facilitate broadband service without following the Code section 8B.11 (broadband grant program) and the rules adopted by OCIO, so long as it complies with federal requirements for the use of the money.

The bill takes effect upon enactment.
[6/10: 49-0 (Excused: Feenstra)]

SF 2408 – Supplemental and Continuing Appropriations: COVID-19

SF 2408 provides supplemental appropriations and continuing appropriations and addresses other matters related to a 30-day shutdown of the Legislature amid the Coronavirus outbreak.

Division I supplemental appropriations from the FY20 General Fund to the Department of Human Services for:

• Medicaid = $89 million
• HAWK-I = $1.7 million
• Glenwood = $596,000. This is an addition the $333,0000 supplemental appropriation made earlier this year. The additional money will be used to hire 26 residential treatment workers via contract.

The bill makes a supplemental appropriation of $525,000 from the FY20 General Fund to State Board of Regents for COVID-19 testing at the State Hygienic Lab (U of I).

Division II provides these limitations on K-12 standing appropriations for FY21:

• $8.2 million for non-public school transportation
• $0 for Instructional Support State Aid
• An additional cut of $15 million to AEAs

Division III provides continuing appropriations of FY20 line items for two months following the beginning of FY21 (July and August). This funding will be considered allotments toward full appropriations when the Legislature passes the FY21 budget and it is singed by the Governor. Exclusions to the two-month appropriations include RIIF appropriations, one-time FY20 appropriations and $227,000 to the Department of Cultural Affairs for records center rent (in the Economic Development budget).

Division IV notwithstands certain limitations on intra- and inter-departmental transfers for the remainder of FY20 and for the first two months of FY21. This will give the Governor flexibility to move moneys from different funds in response to the COVID-19 pandemic without approval of the Legislature.

Division V provides for an appropriation of up to 10% of the projected balance of the Economic Emergency Fund ($19.6 million) to the Department of Management. If the amount appropriated is insufficient to meet needs, upon approval of the Legislative Council, appropriations will be made up to the remaining balance in the Fund. The current balance for FY20 is $196 million.

Division VI waives instructional time requirements and minimum school day requirements for school districts or accredited non-public schools that closed on or before April 12, 2020, to contain the spread of COVID-19. In addition, the bill allows the Governor to waive the requirements for schools that have closed or do close after April 12, 2020. This section is repealed July 1, 2020.

[Using Rule 19, the Senate bypassed the Appropriations Committee and moved the legislation as a Committee of the Whole on a voice vote before final passage by the Senate.][3/16: 43-0 (Excused: Bisignano, Breitbach, Edler, Hogg, Segebart, J. Smith, T. Taylor)]

HF 2629 – Future Ready Iowa 2020

HF 2629 extends the Future Ready Iowa program by creating an Expanded Registered Apprenticeship Opportunities program. Components include:

• Future Ready Iowa Apprenticeship Training Program to encourage small and medium-sized businesses to start apprenticeship programs. Seventy percent or more of the apprentices must be residents of Iowa; the rest must be residents of states contiguous to Iowa. Funding was $1 million in FY20. The Governor recommended $1.6 million for FY21. No appropriations in this bill.
• Iowa Child Care Challenge Fund (Iowa Workforce Development): The Iowa Employer Innovation Fund matches eligible employer contributions to expand education and training leading to high-demand jobs. A business or nonprofit may apply for construction of a new child care facility, rehabilitation of an existing child care facility, or retrofitting and repurposing an existing structure. Funding was $1.2 million for FY20. The Governor recommended an increase of $2.8 million to bring the total to $4 million. The portion of the increase going to the Child Care Challenge Fund is $2 million. No appropriation in this bill.
• Computer Science Instruction – K-12 Educational Standards Online Coursework: This requires all school districts and nonpublic schools to include computer science and adds a half unit of instruction to the Iowa core. The bill allows the instruction to be offered online. This portion goes into effect July 1, 2022. No appropriation in this bill.
• Operational Sharing to include a Work-based Learning Coordinator: A work-based learning coordinator would help facilitate structured education and training programs at K-12 schools that include authentic work-site training, such as registered apprenticeship programs. This position would be included under the maximum amount of additional weighting a school district can receive for sharing staff in a budget year, effective for the 2021-22 school year.
• Last Dollar Scholarship Program: The bill addresses these qualification issues:
  • Allows a student who graduates from high school, before becoming an adult learner, to enroll full-time at a community college. This addresses eligibility for 19-year-old students, meaning students don’t have to attend immediately after graduating.
  • Fixes an issue with students taking prerequisite courses not being eligible for the program since they did not go directly into an eligible program.
  • The bill’s proposed changes allow for all eligible students to receive scholarships for part-time classes during the summer. No appropriation in this bill.
• Division 6: Senior Year Plus and Postsecondary Enrollment Options: The division eliminates the part-time enrollment limitation for a high school student enrolling in a community college course through Concurrent Enrollment (Senior Year Plus). The bill eliminates all references within the program that restrict it to part-time enrollment.
  [6/11: 49-0 (Excused: Hogg)]

HF 2644 — FY21 Transportation Budget

HF 2644 makes appropriations to the Department of Transportation (DOT) from the Road Use Tax Fund (RUTF) and the Primary Road Fund (PRF) for FY20-FY21. It appropriates a total of $393.9 million and 2,739 full-time equivalent (FTE) positions for FY21 to the DOT. This includes $51.5 million from the RUTF and $342.4 million from PRF. This is a net decrease of $14.1 million and an increase of eight FTE positions. The decrease is a result of the completion of the Sioux City Combined Facility and the new Driver’s License Service Center in Dallas County. It includes:

• $48.6 million to the Administrative Services Division, an increase of $55,000. It represents funding shifted from the Highway Division to the Administrative Services Division to provide for a Transportation Commission Secretary FTE.
• $262.8 million to the Highway Division, an increase of $1.9 million. Funding provides seven FTEs to perform project development and field construction inspections, and additional medium- and heavy-duty truck equipment purchases. In FY18, the DOT began transitioning from a 15-year to a 12-year replacement cycle.
• $4.3 million is transferred to the Department of Administrative Services for workers’ compensation, an increase of $285,000.
• $561,000 for the Statewide Interoperable Communications System, a $256,000 decrease.
• $242,000 to fund the production and printing of paper transportation maps. Maps are printed every other year.
• $10.1 million for inventory and equipment replacement, a $245,000 decrease.
• $11.3 million to renovate the Northwest Wing of the DOT headquarters in Ames. This new appropriation is for utility improvements and renovations at the main Administration building.

HF 2644 also:

• Requires the DOT to study the effectiveness of rumble strips in preventing vehicle crashes at certain stop-controlled intersections. Findings must be submitted to the Legislature by December 31, 2021.
• Requires the DOT to submit an annual report to the Legislature no later than December 31 for the next five fiscal years. It must include any cost savings to the Department due to adding FTEs over the prior fiscal year.

The bill takes effect July 1, 2020.
[6/13: 49-0 (Absent: Hogg)]

HF 2642 – RIIF Budget

HF 2642 appropriates from the Rebuild Iowa Infrastructure Fund (RIIF) and the Technology Reinvestment Fund (TRF). Highlights include:

• Iowa Economic Emergency Fund Transfer: $70 million to the General Fund, which then goes to the Rebuild Iowa Infrastructure Fund to balance the FY20 shortfall.
• RIIF appropriations include:
  • Major Maintenance Fund is reduced from $20,000,000 to $12,000,000; Routine Maintenance Fund is reduced from $2,000,000 to $1,000,000.
  • Standing Appropriations: State Housing Trust Fund $3,000,000
  • Standing Appropriations: Environment First Fund $42,000,000
  • Department of Administrative Services
  • Capitol Security Cameras $250,000
  • Department of Agriculture
    • Water Quality Initiative Fund $5,200,000
    • Renewable Fuels Fund $3,000,000
  • Cultural Affairs
    • Iowa Great Places $1,000,000
    • Strengthening Communities Grants (Rural YMCAS) $250,000
  • Economic Development Authority
    • CAT Grants $5,000,000
    • Regional Sports Authority $500,000
  • Human Services
    • DHS Infrastructure improvements (ADA) $596,000
    • Nursing Home Facilities Improvements $500,000
    • ChildServe pediatric 24/7 skilled nursing facility: $500,000 FY22
  • Iowa Law Enforcement Academy – Furniture, fixtures, equipment $280,000
  • Natural Resources
    • Lake Restoration $8,600,000
    • State Parks $1,000,000
    • Water Trails and Low Head Dam Grants $250,000
  • Public Defense
    • National Guard Armories $1,000,000
    • Natural Guard Readiness Centers $1,000,000
    • Camp Dodge $250,000
  • Public Safety
    • Interoperable Communications System payments $3,960,945
    • Ballistic Vests replacement $467,500
    • Bomb Suits replacement $384,000
    • Aircraft purchase $1,713,170
  • Judicial Branch
    • Major maintenance $400,000
    • County courthouses furniture, equipment $211,455
  • Legislative Branch – Gutter replacement $1,250,000 FY21; $1,250,000 FY22
  • Regents
    • Tuition Replacement $28,268,466
    • UNI Industrial Technology Center $13,000,000 FY22; $18,000,000; FY23; $8,500,000 FY24; overall project cost estimated at $42 million; remaining amount will come from other sources
    • ISU Student Innovation Center adjustment $3,375,000 to FY22; ISU Vet Diagnostic Lab adjustment $3,600,000 to FY24
  • Transportation
    • Public Transit Vertical Infrastructure Grants $500,000
    • Recreational Trails $1,000,000
    • Railroad Revolving Loan Fund $500,000
    • Commercial Air $1,000,000
    • General Aviation $650,000
  • Treasurer – County Fairs Infrastructure (divided equally) $1,060,000
  • Veterans Affairs – Iowa Veterans Cemetery road resurfacing $50,000
• Significant TRF funding includes:
  • Education
    • ICN part III Maintenance/Leases $2,727,000
    • Iowa Public Broadcasting Station Equipment Replacement $1,000,000
  • Human Rights – Criminal Justice Information System $1,400,000
  • Iowa Telecommunications and Technology Commission – Firewall improvements $2,071,794
  • Revenue – Tax System Upgrade $4,070,460
    [6/13: 45-2 (No: Quirmbach, R. Taylor; Excused: Greene, Hogg, Lykam)]

HF 2643—FY21 Omnibus Budget

HF 2643 is the FY21 general fund omnibus budget bill. The total FY21 budget with this bill, standing unlimited appropriations, school aid and transportation equity is $7.77 billion, a $45.8 million decrease based on estimated net FY20.

Division I—Continuing Appropriations-Administration and Regulation Appropriations

Requires the Department of Management (DOM) in consultation with LSA to determine the FY20 line-item appropriations and standing appropriations. State agencies will see status quo funding based off of FY20 appropriations unless otherwise noted in this bill. Maintains the same level of FTEs as in FY20.

These continuing appropriations do not apply to appropriations made from the Rebuild Iowa Infrastructure Fund (RIIF), Technology Reinvestment Fund (TRF), Road Use Tax Fund (RUTF) and Primary Road Fund (PRF).

Appropriations made in FY20 that are not included in FY21:

• $50,000 appropriated to DAS for establishing a listing of real property owned or leased by the State (was in HF 759, Admin & Reg budget).
• $227,243 appropriated to DCA for rent on their records center (was in SF 608, Economic Development budget). This appropriation is no longer needed. The lease is over.
• $286,000 appropriated to Iowa Law Enforcement Academy for relocation (was in SF 615, Justice budget).
• $21 million for flood recovery to the Flood Mitigation Board (SF 2144, FY20 Supplemental).
• $1,300,751 appropriated to DOM for distribution to other governmental entities for rate adjustments established by the OCIO (HF 759, Admin & Reg budget).

The bill repeals the two-twelfths (two months of FY21) continuing appropriations and spending authority the Legislature authorized in SF 2408, Supplemental and Continuing Appropriations Act—COVID-19.

Division II—General Assembly – Reduces the standing appropriation for the General Assembly and the Legislative Agencies by $1 million (total $36 million).

Division III-Administration and Regulation Appropriations – FY21 General Fund appropriations

• $3,882,948 to DAS for utilities, an increase of $358,337 compared to estimate net FY20. No change to FTEs.
• $1,874,870 to SOS, a decrease of $250,000.

Division IV—Education Appropriations – FY21 General Appropriations to Board of Regents:

• $10,536,171 for the Iowa School for the Deaf, an increase of $236,884 compared to FY20. No change to FTEs.
• $4,434,459 for the Iowa Braille and Sight Saving School, an increase of $99,700 compared to FY20. No change to FTEs.
• $8 million reduction to the Board of Regents.
• Increases the maximum balance of the Scholarship and Tuition Grant Reserve Fund from 1% to 2% of the funds appropriated to the Scholarship and Tuition Grant Programs under 261.25 (private institutions).

Division V—Judicial Appropriation

• $181,023,737 to the Judicial Branch, a reduction of $500,000.
• Civil Trials-Location: Reauthorizes the Judicial Branch to move a civil trial to a contiguous county if all parties agree, even if the county is not in the same judicial district or judicial election district

Division VI—Health and Human Services Appropriations – Appropriates from the Temporary Assistance for Needy Families (TANF) Federal Block Grant for FY20: $5,002,006 to the Family Investment Program (FIP) Account, an increase of $1,494,635 compared to estimated net FY20.

FY21 General Fund Appropriations to DHS:

• $1,459,599,409 to Medical Assistance (Medicaid), a decrease of $56,765,000 compared to estimated net FY20. Fully funds Medicaid, according to the Forecasting Group.
• $7,349,002 to State Supplementary Assistance, a decrease of $463,907 compared to estimated net FY20 due to declining caseloads.
• $37,598,984 to Children’s Health Insurance Program (Hawki), an increase of $16,500,558 compared to estimated net FY20, which funds the program at the Forecasting Group’s estimate. The increase is mainly due to the phaseout of the 23% FMAP rate.
  • Of these funds, $146,682 is allocated to DPH for an outreach contract, an increase of $67,196 compared to FY20, due to the change in FMAP.
• State Resource Centers
  • Glenwood: $16,700,867, a decrease of $333,000, which reflects a one-time appropriation for technical assistance in FY20.
  • Woodward: $10,193,360 (status quo)
• Eldora State Training School: $16,029,488, an increase of $2,078,527 to replace one-time carryforward funds used in FY20 to hire additional staff.
• Department of Public Health—Addictive Disorders: Reduction of $1.45 million from the General Fund. This is replaced by $1.45 million from sports wagering receipts.

Division VII-Health and Human Services Prior Appropriations and Other Provisions

• Allows IDPH to carry forward unspent FY20 funds ($200,000) for rural psychiatry residencies.
• Allows DHS to carry forward unspent FY20 funds from FIP, General Administration, Field, Child & Family Services, SSA for SNAP error rate, and allows DHS institutions to retain federal COVID funding.

Division VIII—Health and Human Services FY2019-FY200 Provisions Not Applicable for FY2020-2021 – Clarifies that some specifications in the FY20 HHS budget do not apply to FY21. Many of these provisions related to requiring RFPs for certain programs (HOPES, Sexual Violence Prevention, and Tax Preparedness Assistance), certain one-time reports, language that is no longer necessary, specifying staff to be hired in FY20 (at the MHIs, CCUSO and Field Ops), and policy that has been implemented.

Division VII Health and Human Services—New Provisions Applicable for FY2020-2021

• Section 33 – State Medical Examiner –Requires the State Medical Examiner to enter into a memorandum of understanding with the University of Iowa Hospitals and Clinics to coordinate completing forensic autopsies when available. UI began accepting cases from Scott County in March. This language will affirm a longer-term commitment with UI to coordinate completing autopsies for the eastern part of Iowa to avoid additional county transportation costs to Ankeny.
• Sections 34-36 – Removal of RFPs – Last year, the HHS Budget required three programs (HOPES, Sexual Violence Prevention, and Tax Preparation Assistance) to go through an RFP process. These sections are added back in to Code, as they were prior to the issuance of RFPs during the interim.
• Sections 30-38 – Medical Contracts rename – Changes the standard name of the Medical Contracts section of the DHS budget to “Health Program Operations.” The DHS director would like to do an interim analysis of the need to bring staff back to Iowa Medicaid Enterprise, rather than the majority of staffing being through contracts. This broader definition of program operations will help in that analysis.
• Section 39 – Group Foster Care – Lowers the amount allocated to Group Foster Care from $34.5 million to $26 million. This is part of implementing the Family First Act, and will allow those funds to be reallocated to assist with family centered services.
• Section 40 – Family Support Subsidy – Enrollment continues to decline in the Family Support Subsidy Program. This section allows funds to be transferred to the Children at Home program, based on reduced caseloads. 
• Provider Rates – Updates many provider rates based on DHS recommendation or changes in the timing of rebasing for certain provider types. This section also updates the age (from 21 to 23) for the Preparation for Adult Living Program for former foster care youth, based on the extension allowed in last year’s HHS Budget.
• Emergency Rules – This is standard language allowed every year for DHS to implement emergency rules for provider rate changes.
• DHS FY2020 Carryforward Report – Requires DHS to report to the HHS Budget Sub on a quarterly basis on how they spent FY20 carryforwards for FIP, SSA, CFS, MHIs, Field, and General Admin. This is part of a plan to update future HHS Budgets to reflect agency needs.
• Child and Family Services – Allows the Child and Family Services appropriation to be used toward implementing the Family First Act.

Division X-Public Health Emergency Provisions COVID-19 Regulations

• Federal waivers will apply during this public health emergency when it conflicts with state law.
• Extends the County Hospital Funding provisions of the Governor’s proclamations through June 30, 2021.

Division XI—Mental Health and Disability Services

• Provides DHS with additional oversight authority in MHDS Regions, including reviewing financial information, contracts and other audits, and requiring MHDS Regions to submit 28E agreements for approval.
• Provides that counties that leave one MHDS Region to move to another may retain their ending fund balances.
• Requires DHS to facilitate and all counties in the County Social Services MHDS Region to participate in discussions regarding the membership of the Region. This section allows a new MHDS Region to form if it meets the population and other requirements in the section. 
• Requires Polk County MHDS to draw down Medicaid funds when available. Allows Polk County to transfer funds to County Mental Health and Disability Services Fund for another year with a report due in September 2021. [These two fixes for Polk County probably don’t do enough to save services for some.]
• Appropriates $5 million from the Grow Iowa Values Fund for Polk County MHDS.

Division XII-Foster Home Insurance Fund – Changes the Foster Home Insurance Fund from the state contracting with a vendor for insurance claims, and instead requires DHS to pay for foster parents to have their own liability insurance.

Division XIII—Veterans Home Carryforward – Limits the Iowa Veterans Home carryforward to 10% of the IVH budget ($800,000). **This division was vetoed by the Governor.

Division -XIV-Property Tax Credits – General Fund, changes to the standing appropriations:

• Homestead Property Tax Credit: $139,984,518. This is at the FY20 level, $2,799,690 below the estimate to fully fund the credit in FY21.
• Elderly and Disabled Tax Credit: $20,500,000. This is at the FY20 level, $2,460,00 below the estimate to fully fund the tax credit.
• Prorates the Homestead Property Tax Credit, Elderly and Disabled Tax Credit, and Rent Reimbursement Tax Credit if there is not enough appropriated to fully fund all claims. Specifies that claims for rent reimbursement denied in FY21 due to insufficient funds will receive priority in FY22.

Taxpayer Relief Fund appropriations to:

• Homestead Property Tax Credit: $2,799,690
  • Elderly and Disabled Tax Credit: $2,460,000
  • These appropriations will fully fund the credits.

Division I effective June 26, 2020.

Division XV-Corrective Provisions – Corrective Provisions for these Acts:

• SF 2259-Firefighter Equipment Donations Liability Act
• SF 2275-Encluding Law Enforcement Act
• SF 2261-Telehealth in Schools
• HF 2554-Continuous Sexual Abuse of a Child
• SF 2357-Physician assistants, scope of practice
• HF 2589-Medical Cannabidiol Act
• HF 2536-Code Editors Bill

Division XVI—Iowa State Fair Board-Bond Authorization – Authorizes the Iowa State Fair Board to issue and sell negotiable revenue bonds to provide sufficient funds for salaries, support, maintenance and miscellaneous purposes if they do not hold the Iowa State Fair in FY21. Per Iowa Code 173.14B, the Iowa State Fair Board can issue and sell revenue bonds for three purposes: 1) to acquire real estate for the fair; 2) to pay expenses of building or repair projects; 3) to advance any of its corporate purposes. The Legislature, by a constitutional majority (and approval by the Governor), can issue or sell the revenue bonds for one of those three purposes.

Division XVII—Iowa Law Enforcement Academy (ILEA_– Relocation – Allows monies appropriated to ILEA for temporary relocation of the Academy during the 2019 session that remain unencumbered at the end of FY20 not to revert until the close of FY21. The Iowa Law Enforcement Academy had to relocate temporarily for major remodeling of their facility. The cadets have been staying in rental units, and classes are held in a West Des Moines building. Not all of the money for the relocation has been spent, and this allows the money to carry forward. Administrative relocation will happen later in the summer after new cadets come in.

Division XVIII—Nonpublic School Concurrent Enrollment – Non-reversion language for one year for the nonpublic school concurrent enrollment payments to community colleges from moneys that were appropriated in FY20.

Division XIX—Resources Enhancement and Protection – The REAP standing appropriation was scheduled to sunset in 2021. This extends the sunset to 2023.

Division XX—Clerks of the District Court – Allows clerks of district court to serve as clerk in more than one county in the same judicial district. A number of smaller counties do not need full-time clerks.

Division XX—Department of Public Safety (DPS) Appropriations — FY19-FY20 – Appropriates an additional $2.4 million from FY20 to DPS for overtime expenses, including salaries, support, maintenance and miscellaneous purposes.

Division XXII—Alarm System Contractors—Fees and Fines – Alarm System ContractorsLanguage from HF 2155. It prohibits a political subdivision from adopting or enforcing an ordinance requiring an alarm system contractor to pay a fee or fine associated with false alarms.

Division XXIII—Economic Development Authority

• Allows IEDA to use General Fund dollars for administration of technical assistance to communications service providers in completing applications for federal funds for broadband. **This line item was vetoed by the Governor.
• Clarifies that continuing appropriations apply to all salaries and divisions at IEDA for FY21.
• Provides $100,000 to IEDA for FY21 for insurance for economic development and international insurance economic development. This is non-General Fund dollars. Allocation/language is in the Economic Development budget every year.
• Money received from the U.S. Department of Treasury under the Social Security Act will be appropriated to Iowa Workforce Development to administer unemployment compensation.

Division XXIV—Contingent Appropriations—FY20-FY21

• College Student Aid Commission: $32,000 to implement Future Ready Iowa bill (HF 2629)
• $300,000 to the College Student Aid Commission to implement Rural Veterinarian Loan Program (SF 2398)
• Department of Public Safety: $411,000 to implement Hemp bill (HF 2581)
• Iowa Law Enforcement Academy: $140,000 to implement Criminal Justice Reform bill (HF 2647)

Division XXV—Adjustment to School Foundation Aid – Allows a school district that had a reduction in property taxes levied for the school budget year 2019 where the reduction exceeded $47 million in assessed value to be eligible for an adjustment in state foundation aid. This applies to the Bondurant-Farrar School District after the county assessor failed to exempt a Facebook data center from property taxes.

Division XXVI—Hemp Regulation – Removes the contingent effective date of the Hemp Act, HF 2581, and makes the legislation effective upon enactment.

Division XXVII—Grain Regulation – Appropriates $350,000 from the General Fund for FY21 to the Department of Agriculture and Land Stewardship to pay for administration and regulation of programs related to grain dealers and grain warehouses. Specifies there will be no fee assessment to the Grain Indemnity Fund during FY21. IDALS usually is able to use interest from the Grain Indemnity Fund to pay for the operations of the grain program. However, the balance of the fund and interest income are too low to do that without lowering the fund balance or assessing more fees on grain elevators/co-ops. The appropriation will let them avoid increasing fees.

Division XXVIII—Returns on Search Warrants – Eliminates the requirement that law enforcement must verify under oath the items that are returned pursuant to a search. The officer will attest to the items collected pursuant to execution of a search warrant.

Division XXVIII—Rural Improvement Zones – Previously, rural improvement zones had to include a private lake development. That requirement is being changed in response to a Supreme Court decision involving a drunk driving arrest by a DNR officer at Lake Panorama. The person arrested challenged DNR’s authority to arrest him under the argument that the lake was private property. The Supreme Court held that the lake was not private property because it is accessible from the north by the river. The language change is based on discussions with bond attorneys to ensure that the Lake Panorama RIZ continues to meet the standards to qualify as a RIZ.

Division XXIX—County Zoning – Amends the county zoning bill (HF 2512) by defining the area as “within county, but outside the corporate limits of any city,” instead of area regulated by the county zoning ordinance.

Division XXX—College Student Aid Commission – Amends the FY20 appropriation to the College Student Aid Commission for the Iowa Skilled Workforce Grant (SF 608, Economic Development budget). This language transfers $600,000 to the Future Ready Iowa Skilled Workforce Last-Dollar Scholarship Fund. 

Division XXXI—Voting (voter suppression) – Prohibits county auditor from filling in ABR information best means available. County auditor must call, email or mail applicants to obtain missing information within 24 hours. If the voter does not have his or her voter verification number, the auditor will verify the applicant’s identity prior to supplying the voter verification number by asking the applicant to provide at least two facts about them (date of birth, last four digits of social security, residential address, mailing address, middle name). The auditor will verify voter ID prior to mailing the ballot.

Division XXXII—Board of Regents-Attorneys – Allows Board of Regents to hire special outside counsel for more reasons than collective bargaining. They must get approval from the Executive Council.

Division XXXIII—Electric Transmission Lines – Defines “electric transmission line” and “incumbent electric transmission owner.” Pursuant to the operative provisions of the bill, incumbent electric transmission owners have the right to construct certain electric transmission lines.

• Grants incumbent electric transmission owners the right to build electric transmission lines that have been approved in a federally registered planning authority’s transmission plan and that connect to the incumbent electric transmission owner’s facility. If the line connects to the facilities of more than one incumbent, then those incumbents will have the right to construct equal portions of the line. If one incumbent declines to construct its portion of a line, the other(s) may construct the entire line.
• Requires written notice of an incumbent’s intent to construct a line to the Board within 90 days of the line being approved. The incumbent must then follow the applicable franchise requirements of the Board. If the incumbent declines to construct the line, the Board may determine whether another person can construct the line.
• Contains cost accountability measures, which require an incumbent to provide the Board with a cost estimate for the line within 30 days of the Board issuing a franchise for the line. The incumbent will provide updated information regarding the cost estimate on a quarterly basis until the line is constructed.
• Does not modify the authority of the Board, the rights of landowners, or the requirements, rights and obligations relating to the construction, maintenance and operation of electric transmission lines pursuant to Chapter 478.
• Does not apply to underground lines that have not been approved through a federally registered planning authority transmission plan.
• The Board must adopt rules to administer the provisions of the bill.

Division XXXIV—Contingent Effective Date and Retroactive Applicability – Effective July 1, 2020.
[6/14: 30-17 (No: Democrats, Miller-Meeks; Excused: Greene, Hogg, Lykam)]

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**HF 2643 – Items Vetoed

House Passage: 51-41, June 14, 2020
Senate Passage: 30-17, June 14, 2020
Total Dollars Vetoed: $0
Item-Vetoed: June 30, 2020

Background

House File 2643 is the FY21 General Fund omnibus budget bill. The total FY21 budget with this bill, standing unlimited appropriations, school aid and transportation equity is $7.77 billion (which is $19 million lower than the House-passed bill). That’s a $45.8 million decrease over estimated net FY20. The bill provides for status quo funding for FY21 for the majority of General Fund and other fund appropriations. The biggest changes from FY20 are to Homeland Security (flood recovery), Medicaid, Hawki and state universities.

The Governor approved HF 2643 with the exceptions of sections 57 and 91.

Item Veto — Governor’s Justification

The Governor vetoed section 57 relating to the Iowa Veterans Home. That section limited carryforward of operating funds to $800,000 annually. The language limited the carryforward of appropriations or revenues at the close of the fiscal year. The Governor stated that the vast majority of the Veterans Home budget comes from revenues paid from a variety of sources and believes this limitation on the carryforward could have significant unintended consequences.

The Governor vetoed section 91 that authorized the Iowa Economic Development Authority to assist communication broadband providers in obtaining federal funds and other funds to improve broadband infrastructure. The Governor believes the Iowa Office of the Chief Information Officer is the best state agency to assist in these efforts and that introducing another government entity is unnecessary and counterproductive.

The Governor’s veto message reads:

 I hereby transmit House File 2643, an Act relating to state and local finances by making appropriations, providing for legal and regulatory responsibilities, providing for other properly related matters, and including effective date and retroactive applicability provisions.

House File 2643 is approved on this date with the exception of sections 57 and 91.

Section 57 would have amended Iowa law governing the funding of the Iowa Veterans Home to limit the amount or revenues or appropriation that may carry forward at the close of a fiscal year to $800,000. Because the Iowa Veterans Home’s state appropriation is less than eight percent of the its total budget and the vast majority of that budget comes from revenues paid from a variety of sources, this section could have significant unintended consequences. I look forward to working with the legislature to consider alternative methods of addressing its concerns in a manner that better recognizes the unique funding and budgetary issues of the Iowa Veterans Home.

Section 91 would have authorized the Iowa Economic Development Authority to assist broadband providers in obtaining federal funds and other funds to improve broadband infrastructure. While I strongly support assisting providers in improving broadband infrastructure, Iowa’s Office of the Chief Information Officer coordinates our broadband initiatives and has the best expertise to assist in these efforts. Introducing another government entity is unnecessary and could be counterproductive.

For these reasons, I respectfully disapprove House File 2643 in part, only as specified above, in accordance with Article III, Section 16, of the Constitution of the State of Iowa. The reminder of House File 2643 no disapproved as stated herein is approved on this date.