Fiscal Note
Fiscal Services Division
HF 2569 – Workforce Omnibus (LSB5183HZ)
Staff Contact: Evan Johnson (515.281.6301) evan.johnson@legis.iowa.gov
Fiscal Note Version – New
Description
House File 2569 relates to various matters under the purview of the State, including city and
county zoning, work-based learning, recruitment of health care professionals, regulations
affecting veterans and military spouses, insurance producer temporary licenses, and the State
building code.
Division I — County and City Zoning and Inspections
Description and Background
Division I prohibits a county or city from requiring an inspection of a manufactured home that
has been inspected according to requirements of the U.S. Department of Housing and Urban
Development (HUD) and constructed in conformance with specified federal manufactured home
construction and safety standards.
Fiscal Impact
Division I is estimated to have no fiscal impact to the State of Iowa. The fiscal impact to
counties and cities cannot be estimated due to a lack of data.
Division II — Work-Based Learning
Description and Background
Division II makes changes to Iowa Code section 256.9 by adding a subsection to require annual
reporting by the boards of directors of school districts on student work-based learning
participation. The programs required to be reported include registered apprenticeships, quality
pre-apprenticeships, internships, on-the-job training, and projects through the Iowa
Clearinghouse for Work-Based Learning.
Additionally, Division II makes changes to Iowa Code section 272.1 by adding the definition of
“work-based learning program supervisor.” According to the Bill, a work-based learning
program supervisor is defined as a person who is certified to supervise students’ opportunities
and experiences related to workplace tours, job shadowing, rotations, mentoring,
entrepreneurship, service learning, internships, and apprenticeships.
Division II also adds new Iowa Code section 272.16 related to the certification of work-based
learning supervisors. The Bill requires the Board of Educational Examiners to adopt rules for
the certification of work-based learning program supervisors. Additional information about work-
based learning in Iowa can be found here.
Fiscal Impact
Division II is estimated to have no fiscal impact to the State.
Division III — Health Care Workforce Recruitment
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Description
Division III makes changes to Iowa Code section 261.113 regarding the Rural Primary Care
Loan Repayment Program. The Bill eliminates the Iowa-based residency program requirement
for applications and adds neurology as an eligible specialty for applicants. The Bill also adds
part-time rural practitioners as eligible applicants for the Program. Part-time practice is defined
by the Bill as at least 70.0% of a 40-hour workweek.
Additionally, Division III makes changes to Iowa Code section 261.115 regarding the Health
Care Professional Recruitment Program. The Bill allows for advanced registered nurse
practitioners and registered nurses to be eligible for the Program. Also, the Bill adds Iowa
community colleges established under Iowa Code chapter 260C as eligible institutions.
Division III also makes changes to Iowa Code section 261.116 regarding the Health Care Loan
Repayment Program. The Bill renames the Health Care Loan Repayment Program to the
Health Care Award Program. The Bill also strikes the requirement that an applicant have a
qualified student loan and changes the structure of the Program to provide that a direct financial
award is paid directly to the recipient. Additionally, the Bill allows part-time nurse educators to
qualify for the Program as long as the individual is also practicing as a registered nurse or
advanced registered nurse practitioner.
Background
The Rural Primary Care Loan Repayment Program was established in 2012 under the direction
of the College Student Aid Commission. The Program provides loan repayments for medical
students who agree to practice as physicians in service commitment areas for five years.
Currently, participants are eligible for loan repayment up to $40,000 annually for five
consecutive years, with the maximum repayment limited to $200,000. The Commission is
authorized to enter into no more than 20 Program agreements annually. Annual Program
agreements are to be awarded evenly between students attending the University of Iowa and
students attending Des Moines University. This requirement is waived in the event there are
fewer than half the necessary applicants from one of the institutions.
During the 2018 Legislative Session, SF 2415 (Education Appropriations Act) established the
Health Care Loan Repayment Program to provide repayment of qualified loans for registered
nurses, advanced registered nurse practitioners, physician assistants, and nurse educators who
practice full-time in a service commitment area or teach in Iowa.
Currently, applicants for the Health Care Professional Recruitment Program must be graduates
of an institution of higher learning governed by the Board of Regents or an accredited private
institution. Applicants must also be practicing in a high-need community to be eligible for the
Program. Current applicants must also be working as an athletic trainer, occupational therapist,
physician, physician assistant, podiatrist, or physical therapist who is licensed, accredited,
registered, or certified to perform specified health care services consistent with State law.
Applicants are eligible for a $12,500 award on an annual basis for up to four consecutive years,
totaling $50,000.
Assumptions
• Software modifications to update the online application and award system for the Health
Care Loan Repayment Program will take 106 hours.
• Vendor costs to update the Program will be $95 per hour.
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Fiscal Impact
Division III, Section 16, would require the College Student Aid Commission to update the online
application and award system for the Health Care Loan Repayment Program to allow applicants
to complete a W9 form and to process payments. This is estimated to create a one-time cost to
the Commission of approximately $10,000 in FY 2023. The Commission is funded through
General Fund appropriations.
Division IV — Professional Licensing — Military Spouses
Description
Division IV relates to the professional licensing of active duty military spouses who hold similar
licensing in another state and does the following:
• Expedites the licensing process, provided a set of conditions are met.
• Provides temporary licensing while the required education is obtained.
• Requires a professional licensing board to advise the spouse of any additional education
necessary to meet the licensing requirements of the State.
• Strikes a requirement for the licensee to have been licensed for at least one year in another
jurisdiction to receive a license in Iowa without an examination.
• Adds a provision that waives the fee charged to a license applicant if the applicant is a
veteran.
Background
Currently, the Professional Licensing and Regulation Bureau expedites the licensing of an
individual who is licensed in a similar profession in another state and who is a veteran pursuant
to Iowa Code section 272C.4(12).
Assumptions
The Professional Licensing and Regulation Bureau will implement the provisions of the Division
with current funding and full-time equivalent (FTE) position levels.
Fiscal Impact
Division IV is estimated to have no fiscal impact to the State.
Division V — Emergency Medical Care Provider Certificate — Federal Active Duty or
National Guard Duty
Description and Background
Division V directs the Department of Public Health to include a waiver of the emergency medical
care provider examination fee for an individual who is either serving on, or who was honorably
or generally discharged from, federal active duty or National Guard duty as defined in Iowa
Code section 29A.1.
Fiscal Impact
Division V is estimated to have minimal fiscal impact to the State.
Division VI — Fishing and Hunting Licenses — Military Veterans
Description
Division VI allows any resident of Iowa who has served in the armed forces of the United States
on federal active duty to purchase a lifetime hunting and fishing combination license.
Background
Currently a veteran needs to have been disabled as defined in 38 U.S.C. 11 or have been a
prisoner of war (POW) during the veteran’s military service to qualify for a lifetime hunting and
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fishing combination license. In order to obtain a lifetime license, a person must submit an
application to the Department of Natural Resources (DNR), which requires the Department of
Veterans Affairs to assist in verifying the claims of the applicants. The cost for a lifetime
combination hunting and fishing license for a disabled veteran or POW is a total of $7.
Hunting and fishing license sales revenue is deposited in the Fish and Wildlife Trust Fund,
which is used for fish and wildlife-related research, education, management, and expansion of
opportunities in Iowa. The State also receives federal funds from the Pittman-Robertson Act
and Dingell-Johnson Act which rely on a formula to distribute funds to states. These formulas
include the land area of the State as well as the number of paid hunting or fishing license
holders in the State.
Assumptions
• There will be a decrease of approximately 35,000 licenses of various types sold annually,
with the estimated 35,000 licenses being replaced by new lifetime combination licenses in
the first year.
• Federal funding will be lost due to a decrease in license sales annually.
Fiscal Impact
Division VI will result in a decrease in revenue to the Fish and Wildlife Trust Fund of
approximately $830,000 in license revenue for the first year after this Bill is enacted, and
approximately $1.9 million annually in subsequent years between license revenue and federal
aid. Table 1 below shows the estimated decrease in annual revenue as a result of HF 2569.
Table 1 — Division VI — Fish and Wildlife Trust Fund Impact
Revenue Type FY 2023 FY 2024
License Revenue $ 830,000 $ 990,000
Federal Aid 0 920,000
Total $ 830,000 $ 1,910,000
Division VII, Section 23 — Driver’s License Fees
Description
Division VII, Section 23, amends Iowa Code section 321.191 by waiving certain fees for a
driver’s license for veterans and active duty military members with the following statuses:
• A veteran certified by the United States Department of Veterans Affairs with a permanent
service-connected disability rating of 100.0% is waived from the driver’s license fees that are
set forth in Iowa Code sections 321.191(2), noncommercial driver’s licenses; and
321.191(5), licenses valid for motorcycles.
• An applicant who is on federal active duty or State active duty, as defined in Iowa Code
section 29A.1 is waived from the driver’s license fees set forth under Iowa Code sections
321.191(3), licenses for chauffeurs; and 321.191(5), licenses valid for motorcycles.
• An applicant who was issued an honorable discharge or general discharge under honorable
conditions from service is waived from the driver’s license fees set forth under Iowa Code
sections 321.191(3), licenses for chauffeurs; and 321.191(5), licenses valid for motorcycles.
Background
Under current law, an applicant for a driver’s license is charged a fee that is assessed
collectively with the cost of the base license and the cost of a fee for any applicable
endorsement to the driver’s license. The fees that are waived in HF 2569 for certain veterans
and active duty military members include:
• Noncommercial driver’s license: $4 per year of license validity
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• Motorcycle license or endorsement: Additional $2 per year of license validity (endorsement)
or $6 per year of license validity (motorcycle-only license)
• Commercial driver’s license: $8 per year of license validity
• Chauffeur’s license: $8 per year of license validity
Assumptions
• The number of honorably discharged veterans who will qualify for the waived driver’s license
fees under the Bill is equal to the number of veteran-designated driver’s licenses. The
average number of driver’s licenses with a veteran designation for the last five calendar
years was 24,343 licenses per year.
• As of December 2021, there are 5,712 veterans in Iowa with a service-related disability
rating of 100.0% or more. The Department of Transportation estimates that 714 of the
veterans with a disability rating of 100.0% will request a waived fee for the driver’s license.
• There are an estimated 100 State active duty members and 33 federal active duty members
who will request a fee waiver.
• All eligible active duty or veteran service members that are eligible under the Bill will obtain
credentials at rates approximately equal to rates obtained by those with a veteran’s
designation.
• Each credential is issued for the full eight-year duration.
• The average rates of each of the driving credentials that are issued with a veteran
designation are:
• 62.0% (19,220) of noncommercial licenses.
• 3.6% (1,323) of chauffeur’s licenses.
• 11.0% (3,800) of commercial driver’s licenses.
• 21.4% (6,639) of motorcycle endorsements.
Fiscal Impact
Division VII, Section 23, is estimated to reduce driver’s license fee revenue to the Statutory
Allocations Fund (SAF) by $245,000 per year.
Division VII, Section 24 — Parking Fees
Description and Background
Division VII, Section 24, amends Iowa Code section 364.3 to exempt a person whose vehicle is
lawfully displaying certain veteran-status registration plates from ordinances related to fees at a
city-operated and city-maintained parking meter and from fees at any nonmetered parking lot. A
city shall not charge a fee at a parking meter or nonmetered lot to a person whose vehicle
lawfully displays the following plates:
• Medal of honor special registration plates issued pursuant to Iowa Code section 321.34.
• Ex-POW special registration plates issued pursuant to Iowa Code section 321.34.
• Purple heart special registration plates issued pursuant to Iowa Code section 321.34.
• Registration plates displaying the alphabetical characters “DV” preceding the registration
plate number pursuant to Iowa Code section 321.166.
Fiscal Impact
Division VII, Section 24, is expected to impact the parking meter and nonmetered parking lot
revenue of cities. The fiscal impact cannot be estimated due to a lack of data.
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Division VIII — Military Service Property Tax
Description
Division VIII increases the value of the Military Service Tax Exemption from the current level of
$1,852 of property value for most veterans and their qualified survivors, to $2,500. The change
is effective beginning assessment year 2021 (FY 2023).
Background
Under current law, the Military Service Tax Exemption is equal to $2,778 of property value for
veterans of World War I and qualified survivors and $1,852 for all other qualified situations. The
vast majority of exemption situations qualify for the $1,852 amount. The exemption reduces the
amount of property value subject to property tax. At $1,852 of value and at the statewide
FY 2022 average Military Service Tax Exemption tax rate of $34.45 per $1,000 of taxable value,
the average exemption reduces a veteran’s annual property tax payment by about $64.
The State reimburses local governments for $6.92 per $1,000 of the revenue reduction
associated with the Military Service Tax Exemption. Through the action of the State school aid
formula, the State also reimburses school districts for $5.40 per $1,000. At the $34.45 per
$1,000 statewide average residential property tax rate, this results in $22.13 per $1,000 in
unreimbursed property tax impact that is spread across all types of local governments that levy
a property tax. This impact results in reduced local government property tax revenue.
Assumptions
• The number of taxpayers claiming the Military Service Tax Exemption is estimated at
127,439 for FY 2022 and 123,127 for FY 2023.
• The average tax rate for property subject to the Military Service Tax Exemption for FY 2022
is calculated to be $34.45 per $1,000 of taxed value. That tax rate is assumed to remain
constant for future years.
Fiscal Impact
Division VIII increases the current property tax reduction available to qualified veterans,
beginning FY 2023 (taxes payable in the fall of 2022 and the spring of 2023), by an estimated
$10.6 million. This reduction in property tax payments will result in an increase in two State
General Fund appropriations and a decrease in overall local government revenue. The
FY 2023 impact on government finance is projected to be:
• State General Fund Military Service Tax Exemption appropriation increase: $0.6 million
• State General Fund school aid appropriation increase: $0.4 million
• Local government property tax revenue reduction: $1.8 million
Going forward, the number of qualified veterans is expected to decline each year, and this will
produce a declining fiscal impact on State appropriations and local revenue.
Division IX — Temporary Licenses — Insurance Producers
Description
Division IX relates to temporary insurance producer licensing and permits the Commissioner of
the Iowa Insurance Division (IID) of the Department of Commerce to issue a temporary
insurance producer license without an examination under select circumstances.
Background
In CY 2021, there were 37,552 applications processed by the IID for a temporary insurance
producer license. Of these, 2,192 were resident applications and 35,360 were nonresident
applications. The Iowa Code requires federal background checks on all newly licensed resident
producers and on the initial licenses of nonresident prod