Senate Study Bill 1253 - Introduced
SENATE FILE _____
BY (PROPOSED COMMITTEE ON
WAYS AND MEANS BILL BY
CHAIRPERSON DAWSON)
A BILL FOR
1 An Act relating to state and local government financing,
2 programs, and operations, by modifying provisions relating
3 to mental health and disability services funding, school
4 district funding, commercial and industrial property tax
5 replacement payments, and other specified tax provisions,
6 making appropriations, providing penalties, and including
7 effective date, applicability, and retroactive applicability
8 provisions.
9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
TLSB 2179XC (16) 89
md/jh
 S.F. _____
1 DIVISION I
2 MENTAL HEALTH FUNDING
3 Section 1. Section 123.38, subsection 2, paragraph b, Code
4 2021, is amended to read as follows:
5 b. For purposes of this subsection, any portion of license
6 or permit fees used for the purposes authorized in section
7 331.424, subsection 1, paragraph “a”, subparagraphs (1) and
8 (2), and in section 331.424A, shall not be deemed received
9 either by the division or by a local authority.
10 Sec. 2. Section 218.99, Code 2021, is amended to read as
11 follows:
12 218.99 Counties to be notified of patients’ personal
13 accounts.
14 The administrator in control of a state institution shall
15 direct the business manager of each institution under the
16 administrator’s jurisdiction which is mentioned in section
17 331.424, subsection 1, paragraph “a”, subparagraphs (1) and
18 (2), and for which services are paid under section 331.424A
19 by the county of residence or a mental health and disability
20 services region, to quarterly inform the county of residence
21 of any patient or resident who has an amount in excess of two
22 hundred dollars on account in the patients’ personal deposit
23 fund and the amount on deposit. The administrators shall
24 direct the business manager to further notify the county of
25 residence at least fifteen days before the release of funds in
26 excess of two hundred dollars or upon the death of the patient
27 or resident. If the patient or resident has no residency in
28 this state or the person’s residency is unknown, notice shall
29 be made to the director of human services and the administrator
30 in control of the institution involved.
31 Sec. 3. Section 225.24, Code 2021, is amended to read as
32 follows:
33 225.24 Collection of preliminary expense.
34 Unless a committed private patient or those legally
35 responsible for the patient’s support offer to settle the
LSB 2179XC (16) 89
-1- md/jh 1/51
 S.F. _____
1 amount of the claims, the regional administrator for the
2 person’s county of residence shall collect, by action if
3 necessary, the amount of all claims for per diem and expenses
4 that have been approved by the regional administrator for the
5 county and paid by the regional administrator as provided under
6 section 225.21. Any amount collected shall be credited to the
7 county mental health and disabilities disability services fund
8 region combined account created in accordance with section
9 331.424A 331.391.
10 Sec. 4. Section 249N.8, subsection 1, Code 2021, is amended
11 to read as follows:
12 1. Biennially, a report of the results of a review, by
13 county and region, of mental health services previously funded
14 through taxes levied by counties pursuant to section 331.424A,
15 Code 2021, or funds administered by a mental health and
16 disability services region that are funded during the reporting
17 period under the Iowa health and wellness plan.
18 Sec. 5. Section 331.389, subsection 1, paragraph b, Code
19 2021, is amended to read as follows:
20 b. If a county has been exempted prior to July 1, 2014, from
21 the requirement to enter into a regional service system, the
22 county and the county’s board of supervisors shall fulfill all
23 requirements and be eligible as a region under this chapter and
24 chapter chapters 222, 225, 225C, 226, 227, 229, and 230 for a
25 regional service system, regional service system management
26 plan, regional governing board, and regional administrator,
27 and any other provisions applicable to a region of counties
28 providing local mental health and disability services.
29 Additionally, a county exempted under this subsection shall be
30 considered a region for purposes of chapter 426B.
31 Sec. 6. Section 331.389, subsection 5, paragraph a,
32 subparagraph (2), Code 2021, is amended to read as follows:
33 (2) Reduce the amount of the annual state funding provided
34 for the regional service system or exempted county, including
35 amounts received under section 426B.3 or from the risk pool
LSB 2179XC (16) 89
-2- md/jh 2/51
 S.F. _____
1 under section 426B.6, not to exceed fifteen percent of the
2 amount.
3 Sec. 7. Section 331.391, subsection 1, Code 2021, is amended
4 to read as follows:
5 1. The funding under the control of the governing board
6 shall be maintained in a combined account, in separate county
7 accounts that are under the control of the governing board, or
8 pursuant to other arrangements authorized by law that limit the
9 administrative burden of such control while facilitating public
10 scrutiny of financial processes. A county exempted under
11 section 331.389, subsection 1, shall maintain a county mental
12 health and disability services fund for the deposit of funding
13 received under section 426B.3 or from the risk pool under
14 section 426B.6 and appropriations specifically authorized to be
15 made from the county mental health and disability services fund
16 shall not be made from any other fund of the county. A county
17 mental health and disability services fund established by an
18 exempt county, to the extent feasible, shall be considered to
19 be the same as a region combined account and shall be subject
20 to the same requirements as a region’s combined account.
21 Sec. 8. Section 331.391, subsection 4, paragraphs a and b,
22 Code 2021, are amended to read as follows:
23 a. If a region is meeting the financial obligations for
24 implementation of its regional service system management plan
25 for a fiscal year and residual funding is anticipated, the
26 regional administrator shall may reserve an adequate amount of
27 unobligated and unencumbered funds for cash flow of expenditure
28 obligations in the next fiscal year.
29 b. Each region shall certify to the department of management
30 human services on or before December 1, 2022 2021, and each
31 December 1 thereafter, the amount of the region’s cash flow
32 amount in the combined account that is attributable to each
33 county within the region based upon each county’s proportionate
34 amount of funding and contributions to the region or other
35 methodology specified in the regional governance agreement
LSB 2179XC (16) 89
-3- md/jh 3/51
 S.F. _____
1 or certify the cash flow amount for each separate county
2 account that is under the control of the governing board at the
3 conclusion of the most recently completed fiscal year.
4 Sec. 9. Section 331.391, subsection 4, paragraph c, Code
5 2021, is amended by striking the paragraph.
6 Sec. 10. Section 331.392, subsection 4, paragraph a, Code
7 2021, is amended to read as follows:
8 a. Methods for pooling, management, and expenditure of the
9 funding under the control of the regional administrator. If
10 the agreement does not provide for pooling of the participating
11 county moneys in a single fund, the agreement shall specify how
12 the participating county moneys will be subject to the control
13 of the regional administrator.
14 Sec. 11. Section 331.393, subsection 10, Code 2021, is
15 amended to read as follows:
16 10. The director’s approval of a regional plan shall not be
17 construed to constitute certification of the respective county
18 budgets or of the region’s budget.
19 Sec. 12. Section 331.394, subsection 4, Code 2021, is
20 amended to read as follows:
21 4. If a county of residence is part of a mental health and
22 disability services region that has agreed to pool funding and
23 liability for services, the The responsibilities of the county
24 under law regarding such mental health and disability services
25 shall be performed on behalf of the county by the regional
26 administrator. The county of residence or the county’s mental
27 health and disability services region, as applicable, is
28 responsible for paying the public costs of the mental health
29 and disability services that are not covered by the medical
30 assistance program under chapter 249A and are provided in
31 accordance with the region’s approved service management plan
32 to persons who are residents of the county or region.
33 Sec. 13. Section 331.424A, subsection 1, paragraph b, Code
34 2021, is amended by striking the paragraph.
35 Sec. 14. Section 331.424A, subsection 3, Code 2021, is
LSB 2179XC (16) 89
-4- md/jh 4/51
 S.F. _____
1 amended to read as follows:
2 3. a. County revenues from taxes and other sources
3 designated by a county for mental health and disabilities
4 services shall be credited to the county mental health and
5 disabilities services fund which shall be created by the
6 county. The Until the required transfer of funds under
7 paragraph “b”, the board shall make appropriations from the fund
8 for payment of services provided under the regional service
9 system management plan approved pursuant to section 331.393.
10 The For fiscal years beginning before July 1, 2022, the county
11 may pay for the services in cooperation with other counties
12 by pooling appropriations from the county services fund with
13 appropriations from the county services fund of other counties
14 through the county’s regional administrator, or through another
15 arrangement specified in the regional governance agreement
16 entered into by the county under section 331.392.
17 b. Notwithstanding section 331.432, subsection 3, upon
18 conclusion of the fiscal year beginning July 1, 2021, except
19 for an exempt county under section 331.391, subsection 1,
20 the county treasurer shall transfer the remaining balance of
21 the county’s county services fund created under paragraph
22 “a”, including all unobligated and unencumbered funds, to the
23 county’s region to which the county belongs in the fiscal year
24 beginning July 1, 2022, for deposit in the region’s combined
25 account under section 331.391.
26 Sec. 15. Section 331.424A, subsection 4, paragraph a, Code
27 2021, is amended to read as follows:
28 a. An amount of unobligated and unencumbered funds, as
29 specified in the regional governance agreement entered into
30 by the county under section 331.392, shall, for fiscal years
31 beginning before July 1, 2022, be reserved in the county
32 services fund to address cash flow obligations in the next
33 fiscal year, subject to the limitations of this subsection.
34 Sec. 16. Section 331.424A, subsection 4, paragraphs c and d,
35 Code 2021, are amended by striking the paragraphs.
LSB 2179XC (16) 89
-5- md/jh 5/51
 S.F. _____
1 Sec. 17. Section 331.424A, subsections 5, 6, and 9, Code
2 2021, are amended to read as follows:
3 5. Receipts from the state or federal government for fiscal
4 years beginning before July 1, 2022, for the mental health
5 and disability services administered or paid for by a county
6 shall be credited to the county services fund, including moneys
7 distributed to the county from the department of human services
8 and moneys allocated under chapter 426B.
9 6. For each fiscal year beginning before July 1, 2022, the
10 county shall certify a levy for payment of services. For each
11 such fiscal year, county revenues from taxes imposed by the
12 county credited to the county services fund shall not exceed an
13 amount equal to the county budgeted amount for the fiscal year.
14 A levy certified under this section is not subject to the
15 appeal provisions of section 331.426 or to any other provision
16 in law authorizing a county to exceed, increase, or appeal a
17 property tax levy limit.
18 9. a. For the fiscal year beginning July 1, 2017, and
19 each subsequent fiscal year beginning before July 1, 2022, the
20 county budgeted amount determined for each county shall be the
21 amount necessary to meet the county’s financial obligations for
22 the payment of services provided under the regional service
23 system management plan approved pursuant to section 331.393,
24 not to exceed an amount equal to the product of the regional
25 per capita expenditure target amount twenty-one dollars and
26 fourteen cents multiplied by the county’s population, and, for
27 fiscal years beginning on or after July 1, 2023, reduced by
28 the amount of the county’s cash flow reduction amount for the
29 fiscal year calculated under subsection 4, if applicable.
30 b. If a county officially joins a different region, the
31 county’s budgeted amount for a fiscal year beginning before
32 July 1, 2022, shall be the amount necessary to meet the
33 county’s financial obligations for payment of services provided
34 under the new region’s regional service system management plan
35 approved pursuant to section 331.393, not to exceed an amount
LSB 2179XC (16) 89
-6- md/jh 6/51
 S.F. _____
1 equal to the product of the new region’s regional per capita
2 expenditure target amount twenty-one dollars and fourteen cents
3 multiplied by the county’s population, and, for fiscal years
4 beginning on or after July 1, 2023, reduced by the amount of
5 the county’s cash flow reduction amount for the fiscal year
6 calculated under subsection 4, if applicable.
7 Sec. 18. Section 331.424A, Code 2021, is amended by adding
8 the following new subsection:
9 NEW SUBSECTION. 10. This section is repealed July 1, 2022.
10 Sec. 19. Section 331.432, subsection 3, Code 2021, is
11 amended by striking the subsection and inserting in lieu
12 thereof the following:
13 3. Payments or transfers of moneys from any fund of the
14 county to a mental health and disability services region’s
15 combined account under section 331.391 are prohibited.
16 Sec. 20. Section 347.7, subsection 1, paragraph c, Code
17 2021, is amended by striking the paragraph.
18 Sec. 21. Section 426B.1, subsection 2, Code 2021, is amended
19 to read as follows:
20 2. Moneys shall be distributed from the property tax relief
21 fund to counties for the mental health and disability regional
22 service system for mental health and disabilities services, in
23 accordance with the appropriations made to the fund and other
24 statutory requirements.
25 Sec. 22. Section 426B.2, Code 2021, is amended to read as
26 follows:
27 426B.2 Property tax relief fund payments.
28 The director of human services shall draw warrants on the
29 property tax relief fund, payable to the county treasurer
30 regional administrator in the amount due to a county mental
31 health and disability services region in accordance with
32 statutory requirements, and mail the warrants to the county
33 auditors regional administrator in July and January of each
34 year.
35 Sec. 23. NEW SECTION. 426B.3 Mental health and disability
LSB 2179XC (16) 89
-7- md/jh 7/51
 S.F. _____
1 services regional supplement fund.
2 1. A mental health and disability services regional
3 supplement fund is created in the office of the treasurer of
4 state under the authority of the department of human services.
5 The fund shall be separate from the general fund of the state
6 and the balance in the fund shall not be considered part of
7 the balance of the general fund of the state. Moneys in the
8 fund include appropriations made to the fund and other moneys
9 deposited into the fund. Moneys in the fund shall be used
10 solely for purposes of making regional supplement payments
11 under this section.
12 2. For each fiscal year beginning on or after July 1, 2021,
13 there is appropriated from the general fund of the state to the
14 mental health and disability services regional supplement fund
15 an amount necessary to make all regional supplement payments
16 under this section for that fiscal year.
17 3. For each fiscal year begi