Bills Associated with SafeNetRx

Adds to the list of changes that can be made to rules without going through the full administrative rulemaking process (correcting Code & rule citations, internet websites), modifies rule citations (to include publication date), clarifies that legislative branch is exempt from administrative rules process, allows electronic distribution of rules notices, and requires rules that change or estabish a new fee to include the amount of the fee in the publication of the rule.  Takes effect January 1, 2024.

Appropriates federal black grants received in federal fiscal year 2024 (October 1, 2023-September 30, 2024) and federal fiscal year 2025 (October 1, 2024 - September 30, 2025), including substance abuse, community mental health, maternal and child health services, preventive health and health services, residential substance abuse treatment, Edward Byrne memorial justice assistance, community services, community development, surface transportation, social services, transition from homelessness, and child care and development. No major changes except the elimination of the STOP Violence Against Women program, which was deemed as a formula grant and not a block grant.  Effective 7/1/2023.  Staff review: http://www.legis.iowa.gov/docs/publications/NOBA/1374026.pdf

Successor to HF 1, SF 569, and other related property tax reform bills:

Division 1 (County) and 2 (City), Pages 1-20 – Local Tax Levy Reductions and Limitations

These divisions outline the major parts of the bill.  The bill eliminates a number of individual levies and allows cities and counties to take the value of those eliminated levies and add them into their general levy.  (Example: A City with a $0.06 library levy and a $0.12 Civic Center levy would have a general levy of $8.28/1000, instead of $8.10/1000 – 8.10+0.06+0.12).  This section alters general operating expenses, but does not address debt, benefits and tort liabilities.

The overall taxable value of the city or county would be calculated each year and compared to the previous year.  If the local government’s growth in taxable value is greater than 3% but less than 6%, then their allowable growth is adjusted to 2%.  If the local government’s growth in taxable value is greater than 6%, then their allowable growth is adjusted to 3%.  If a local government’s growth in taxable value is less than 3%, no adjustment is made. This mechanism goes into effect in FY 2025 and sunsets after 4 years when additional property tax reforms become reality. 

Division 3 PERL Moratorium and Sunset, page 20 – No new PERL (Public Education and Recreation Levy) levies approved by voters after 07/01/2023.  (Current maximum 13.5 cents)

Division 4 County Sheriff report, Page 20 - Eliminates the current requirement that an annual report from the Iowa state sheriffs’ and deputies’ association be produced that details, based on a sampling of specified county data, the total annual county budget allocation to the sheriff and similar data.

Division 5 Homestead Credit/Exemption changes, pages 20-31 – Phases in a $6500 homestead tax exemption for homeowners aged 65 and older. This will be in addition to both the existing Homestead Tax Exemption and Elderly and Disabled Tax Credit.

Division 6 Military Service Credit, pages 31-32 - Increases the military service property tax exemption to $4000 and removes the State’s responsibility for funding the exemption.

Division 7 Revitalization Area Minimum Assessments, pages 32-34 - Disallows commercial property in a new urban revitalization area from receiving a tax exemption unless the local government and the owner of the qualified real estate enter into a written assessment agreement specifying a minimum actual value until a specified termination date for the duration of the exemption period.  The bill would not allow residential properties in new urban revitalization areas to receive an exemption from school property taxes.

Division 8 DART, pages 34-36 - Allows cities over 200,000 to impose an additional 2.5 percent franchise fee (above the generally capped 5 percent) for public transit as long as those revenues are used to provide property tax relief.

Division 9 County Auditor Valuation Reports pages 36-37 – Allows the Department of Management to expand their valuation data to include the differentiation between revalued property and additions (new construction, annexation, etc.).

Division 10 Reporting, pages 37-52 – Expands local government reporting to the taxpayers to include items such as a list of bonds, notes, or other obligations issued by the city or the county during the preceding fiscal year payable from any source.  The information includes the amount of the issuance, the project or purpose of the issuance, whether it was approved at election or was eligible under a reverse referendum or threshold amounts and identification of issuances from prior fiscal years related to the same project or purpose.

Division 11 Driver's License fees, pages 52-53 - Allows counties to charge a $10 convenience fee for issuing driver’s licenses or non-operators identification cards to non-residents of the county.

Division 12 County Recorder “writing” fees, pages 53-57 - Increases from $1.25 to $2.00 the writing fee assessed by county recorders for transactions involving all-terrain vehicles, water vessels and snowmobiles.

Division 13 Bond Elections, pages 57- 65 - Restricts special elections that involve debt issuance to the date of the general election, the first Tuesday following the first Monday of November. The change also requires local governments to mail a notice of an upcoming indebtedness election and a full text of the public measure to be voted on to each registered voter.

Division 14 County & City Financing, pages 65-74 - Increasing bonding thresholds for cities and counties by 30% plus adds inflationary indexing.

Takes effect July 1, 2023.

Enacts provisions to reorganize all of state government. Of this 1,512 page document, more than 900 pages enacts the new HHS department. Also eliminates local control of community-based corrrections and moves all professional  licensing into a new Department of Inspections, Appeals & Licensing (DIAL). No longer allows the State Library Commission and Iowa Commission for the Blind to hire their own directors (will instead be appointed by Governor).  Combines Insurance Division, Credit Union Division, and Banking Division together under a single department. Moves the Consumer Advocate from the AG's office to the Utilities Board.  Moves Child Advocacy Board under HHS structure. Moves Vocational Rehabilitation Services from Department of Education to Iowa Workforce Development. Includes many other changes. Fiscal note estimating savings is available: www.legis.iowa.gov/docs/publications/FN/1370635.pdf. Takes effect July 1, 2023.

Spends a total of $70.5 million for various state agencies for fiscal year 2024 (FY24), an increase of $20.4 million. Also spends $64.7 million in other funds, an increase of $4 million. Department of Administrative Services: Moves library funding under the DAS umbrella, funds Enrich Iowa at current level ($2,464,823) and adds one-time increase of $25,000 for the State Library ($2,557,594).  Moves cultural affairs and level funds ($168,403). Slight reduction (.1%) in state historical resources including historic library support ($3,136,371) and historic sites ($425,751). State Auditor: Small administrative reduction (.1%), but adds $65,400 for additional auditing needed in state government reorganization (SF 514).  Ethics & Campaign Disclosure Board: Small administrative reduction (.1%).  Governor/Lt. Governor: Adds $495,158 to general office budget ($2.8 million total), but no additional employees.  Department of Inspections, Appeals & Licensing: Small administrative reduction (.1%) across its divisions, except reduces food and consumer safety line item by $65,254 (total $509,565).  Moves Civil Rights Commission, Labor Services with small administrative reduction (.1%). Moves and level funds Worker's Compensation ($3.3 million). Increase of $100,475 for Racing & Gaming Commission for regulatory work ($7 million total). New line item for Professional Licensing ($2,862,660). Creates new Licensing & Regulation Fund for administration of the newly combined licensing operations of the department (all licensing fees go into this pot, including health professions. Requires all boards (including Boards of Nursing, Pharmacy, Medicine) to share staff, but allows the Boards of Nursing, Pharmacy, and Medicine to retain their own executive officers.  Department of Insurance & Financial Services: Small increase (<1%) for banking, credit union, and insurance divisions. Adds new $450,000 appropriation for captive insurance regulation (SF 549). Department of Management: Small increase (<1%) and directly funds CIO position ($4.4 million, of which $325,000 is to be used to provide cybersecurity services to local governments).  The CIO was previously funded using a portion of other department appropriations. Department of Revenue:  Small administrative reduction (.1%) to Department of Revenue, but small increase (<1%) for alcoholic beverage control. Secretary of State: Small administrative reduction (.1%), but level funds address confidentiality program ($195,400). Treasurer of State: Small administrative reduction (.1%). Iowa Utilities Board: Increase of $1.5 million (16%), for a total of $10.75 million).  Other: Small administrative reduction (.1%) to Iowa Public Information Board. Small increase (<1%) to IPERS.  Makes other corrective changes to SF 514 (government reorganization) related to professional licensing and state lottery, and amends the bill title to include all items now in the bill. Effective 7/1/2023. Staff review: https://www.legis.iowa.gov/docs/publications/NOBA/1373718.pdf.

Spends a total of $2.124 billion for health and human services (HHS) programs and agencies for fiscal year 2024 (FY24 is July 1, 2023-June 30, 2024), an increase of $55.3 million. Also spends another $476.1 million in other funds.  Veterans Affairs: No change, but $200,000 in savings from government reorganization was used to increase the veteran's home ownership assistance program (total $2.2 million).  HHS/Aging: Increase of $500,000 for the Office of Public Guardian. No change in funding for the Long-Term Care Ombudsman ($1.2 million), Life Long Links ($1 million), and Return to Community pilot ($850,000). Did not include the Governor's recommended $207,000 general increase for aging services. HHS/Public Health: No change in Addictive Disorders ($23.7 million) and Sports Wagering transfer to addictive disorders ($1.75 million). The Poison Control Center receives an additional $250,000 and Community Capacity is increased by $560,000 for family medicine OB fellowships. No change in funding for rural health clinics ($25,000), SafeNetRX ($600,000), the psychological association internship program ($48,000), free clinics ($334,000), child health specialty clinics ($809,000) and Polk County Medical Society specialty care network ($225,000).  HHS/Medicaid: Increases Medicaid by a total of $33.5 million (total $1.5 billion). Increases to rebase nursing homes ($15 million), brings mental health service rates up to the 85% benchmark ($3 million), increases mental health therapy rates ($7 million), and increases rates for substance use disorder treatment ($3 million).  Adds $5.5 million to replace federal funding used to raise HCBS rates last year (needed for one quarter in FY 2024, but the full $21 million will need to be appropriated in FY 2025 to sustain these rates).  No change in the children's health insurance program ($38.7 million). HHS/Children: No change in childcare assistance ($64.2 million) and early childhood Iowa ($29.3 million). Transfers $15.5 million to the Judicial Branch for court-ordered services to juveniles. Increases the adoption reimbursement for non-recurring legal feels (from $500 to $1,000), for a total of $287,500. Increases funding for Qualified Residential Treatment Programs (QRTP) by $1 million to partially cover future year shortfalls. Funds Child Advocacy Board at current level ($2.6 million).  HHS/Institutions: No change in funding for Eldora ($17.6 million), Glenwood ($16.26 million), and Woodward ($13.4 million). Increases Cherokee Mental Health Institute (MHI) by $340,000 and Independence MHI by $160,000 to pay for the new specialization plan. Adds $1 million to expand capacity at the Civil Commitment Unit for Sex Offenders (CUSO).  HHS/General:  Increases salaries of foster care social workers by ($1.37 million) and HHS field staff ($5 million).  Increases the More Opportunities for Maternal Support (MOMS) program by $500,000 ($1 million total). MH/DS Regions: Funds regions as planned, with per capita rate moving to $40 (an increase $6,489,138, for total of $121,723,160). Continues funding for the state Children’s System Board ($300,000).  Other: No change in family support subsidy ($949,282), child abuse prevention ($232,570), child abuse prevention grants ($125,000), sexual violence prevention programming/SART ($243,000), ABLE Savings Account administration ($200,000), and Refugee RISE ($200,000). Moves and level funds former Department of Human Rights divisions, including criminal and juvenile justice planning, Scott County juvenile crime grant ($140,000), and community advocacy and services (which includes Office on the Status of Women, Office of Persons with Disabilities, Office of Deaf Services). No change in the juvenile detention fund (funding and distribution remain the same).  Other Language: Eliminates the repeal of the hospital assessment that is used to draw down more federal funds to supplement hospital reimbursement (was set to end on July 1, 2023). Establishes a Capital Reinvestment Fund where any revenues from the sale of state-owned, HHS-operated facilities and property is placed (to be reinvested in other state institutions). Makes changes to the public assistance reform bill (SF 494) to clarify that household asset tests apply only to SNAP, and updates to mirror current federal requirements.  Creates a new Public Assistance Modernization Fund and deposits $8 million from the Centene/Iowa Total Care settlement to help build a single-entry portal to help Iowans easily determine benefits for which they qualify and apply for them.  Prohibits a city or county from classifying HCBS waiver homes as a care facility when enforcing compliance with sprinkler systems (facilities are required to install expensive sprinkler systems, driving up the cost of making waiver homes available to those wanting to live in the community). Outlines the requirements of the Family Obstetrics Fellowship funded in the bill.  Requires HHS to work with the Iowa Health Information Network (IHIN) board to develop plans for program enhancements that will empower Iowans to access and direct their health information using the network, protect data privacy, facilitate data exchange to improve health outcomes, and increase provider participation. Allows (but does not require) an annual meeting of the Health Policy Oversight Committee, which is currently required to meet at least twice a year.  Updates the newborn custody release procedures to allow release to a fire station or adoption services provider, per House File 425. Effective July 1, 2023 (except transfer of court-ordered juvenile services, elimination of hospital assessment repeal, and sprinkler system enforcement are effective upon enactment. Staff review: https://www.legis.iowa.gov/docs/publications/NOBA/1373596.pdf. 

Makes changes to standing (automatic) appropriations.  Limits nonpublic school transportation funding to $9 million (no change from prior years). Suspends the $14.8 million in funding to the Department of Education for instructional support (no change, program has not been funded since FY 2006). Reduces AEA funding by $22.1 million (state aid reduction to the AEAs will total $29,557,131 for FY 2024; funding was reduced by $24,557,131 in FY 2023).  Limits Business and Property Tax Credit to $122.35 million (this is a reduction $2.65 million compared to the current fiscal year). Includes technical corrections to state reorganization bill (SF 514), emergency rural hospital bill (SF 75), minor gender-affirming care ban (SF 538), and others.   Staff review: https://www.legis.iowa.gov/docs/publications/NOBA/1373900.pdf. Takes effect July 1, 2023.