Fiscal Note
Fiscal Services Division
SF 2383 – Workforce Omnibus (LSB5183SZ.2)
Staff Contact: Evan Johnson (515.281.6301) evan.johnson@legis.iowa.gov
Fiscal Note Version – Final Action
Description
Senate File 2383 relates to various matters under the purview of the State, including city and
county inspections, work-based learning, recruitment of health care professionals, regulations
affecting veterans and military spouses, insurance producer temporary licenses, and including
applicability provisions.
Division I — County and City 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 (BOEE) to adopt
rules for the certification of work-based learning program supervisors. Certification must include
instruction related to fundamentals in career education, curriculum, assessment, and the
evaluation of student participation. 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.
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Division III — Health Care Workforce Recruitment
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 (FY 2019 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 Internal Revenue Service Form W-9 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 and their spouses who
hold similar licensing in another state and does the following:
• Strikes a provision providing credits toward qualifications for licensure to practice an
occupation or profession.
• Expedites the licensing process and removes the examination requirement for licensure,
provided a set of conditions are met.
• Provides temporary licensing while the required education is obtained.
• Advises the license applicant of any additional education necessary to meet the licensing
requirements of the State.
• Requires a licensing agency to adopt rules to provide credit toward qualifications for
licensure to practice.
• 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.
• Requires the BOEE to waive any fees charged to an applicant for a license if the applicant’s
household income is 200.0% or less of the federal poverty level and the applicant is
applying for the license for the first time in this State. Requires that administrative rules to
implement this provision be adopted by January 11, 2023.
• Adds a provision that waives the initial application fee and one renewal fee charged to a
license applicant, if the applicant is a veteran who has been honorably or generally
discharged, that would otherwise be charged within five years of the discharge. Requires
that administrative rules to implement this provision be adopted by January 11, 2023.
Background
In Iowa Code section 272C.4(12), 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.
Currently, licensing boards, agencies, and departments are to waive fees charged to an
applicant for a license if the applicant’s household income is 200.0% or less of the federal
poverty level and the applicant is applying for the license for the first time in this State.
In FY 2021, the BOEE processed a total of 9,273 first-time license applicants and collected
approximately $1.5 million in fees, of which $772,000 was for license fees. The BOEE retains
75.0% of license fees to finance the activities of the BOEE and deposits the remaining 25.0%
into the General Fund.
The initial application fee and one renewal fee charged to a license applicant who is a veteran
who has been honorably or generally discharged are currently postponed for five years after the
discharge. This fee is currently collected by a licensing board, agency, department, or the
BOEE. The initial license fee is currently waived by the BOEE.
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Assumptions
• The Professional Licensing and Regulation Bureau will perform the provisions of the
Division with current funding and full-time equivalent (FTE) position levels.
• The Bill requires the licensing board, agency, department, or BOEE to waive the initial
application fee and one renewal fee for a veteran who has been honorably discharged from
federal duty within the last five years.
• The number of first-time applicants will be approximately the same as in FY 2021.
• Thirty percent of first-time applicants will have a household income at or below 200.0% of
the federal poverty level.
• Background checks will be required for each applicant.
• The license type, convenience, and background check fees will remain unchanged
compared to FY 2021 rates.
• The BOEE will need to update its system software to account for changes to applicant fees.
This update will have a one-time cost of approximately $10,000.
• Administrative rules implementing Division IV will take effect on January 11, 2023.
Fiscal Impact
Division IV is estimated to decrease revenue to the BOEE by $205,000 in FY 2023 and by
$390,000 in FY 2024 and subsequent years. This would decrease the total annual revenue
collected by the BOEE by 14.2%. Also, Division IV is estimated to decrease revenue to the
General Fund by $29,000 in FY 2023 and by $58,000 in FY 2024 and subsequent years. A
summary of these changes is shown in Table 1 below.
Table 1 — Decrease in Revenue, Division IV
FY 2023 FY 2024 and Subsequent Years
Revenue Type BOEE General Fund BOEE General Fund
License Fee $ 87,000 $ 29,000 $ 173,000 $ 58,000
Convenience Fee $ 4,000 $ 0 $ 8,000 $ 0
Background Check Fee $ 104,000 $ 0 $ 209,000 $ 0
System Update $ 10,000 $ 0 $ 0 $ 0
Total $ 205,000 $ 29,000 $ 390,000 $ 58,000
Division V — Fishing and Hunting Licenses — Military Veterans
Description
Division V creates an annual armed forces fishing license and fishing and hunting combination
license for any resident of Iowa who has served in the armed forces of the United States on
federal active duty. The Department of Natural Resources (DNR) is required to establish rules
and fees for the licenses, but the fees are not to exceed $5.
Background
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
use the land area of the state as well as the number of paid hunting or fishing license holders in
the State. Current license fees range from $10.50 to $101.00.
Assumptions
• There will be a decrease in license revenue of various types sold annually, with license
sales being replaced by the new $5 armed forces licenses.
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• Calculation is based on approximately 462,000 licenses sold annually and assuming 7.6%
of those licenses are to veterans.
Fiscal Impact
There will be an estimated loss of revenue to the Fish and Wildlife Trust Fund of approximately
$890,000 in annual license revenue.
Division VI, Section 25 — Driver’s License Fees — Veterans
Description
Division VI, Section 25, 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 SF 2383 for certain veterans
and active duty military members include:
• Noncommercial driver’s license: $4 per year of license validity
• 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 who 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.
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 • 21.4% (6,639) of motorcycle endorsements.
Fiscal Impact
Division VI, Section 25, is estimated to reduce driver’s license fee revenue to the Statutory
Allocations Fund (SAF) by $245,000 per year.
Division VI, Section 26 — Parking Fees — Veterans
Description and Background
Division VI, Section 26, 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-prisoner of war (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 VI, Section 26, 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.
Division VII — Temporary Licenses — Insurance Producers
Description
Division VII 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. Table 2 below shows the estimated number of temporary applications under
Division VII.
Table 2 — Estimated Temporary License Applications by Application Type in CY 2021
Application Type Number of Applications