Bills Associated with SafeNetRx

Changes property tax assessment limitations for commercial child care facilities.  Takes effect upon enactment and applies retroactively to January 1, 2024. This bill is identical to the Governor's tax bill (SSB3038), Division VI, the Childcare Facility Property Tax Assessment Limitations.

Makes the following changes to organization, structure, and functions of state and local governments and adjusts code to to reflect these changes.

Division 1 -- Department of Natural Resources (DNR) -- grants the director of the Department of Health and Human Services (HHS) the authority to designate specific children from the state training school to carry out tasks for the DNR within state parks, game and forest areas, and other DNR-controlled lands. Eliminates the requirement for DNR to offer permanent housing to these children.
Division 2 -- Department of Inspections, Appeals, and Licensing (DIAL) -- states that the workers’ compensation commissioner serves at the governor's discretion rather than having a fixed term. Removes the requirement for full-time executive directors for certain boards and allows for the appointment of one individual to serve as executive director for multiple boards. Adjusts the handling of contractor registration fees, consolidating them into a single fund and repealing a related fund. Revises fee-setting procedures for health-related professional boards, granting oversight to the DIAL and requiring annual reviews to ensure fees cover expenses and are comparable to those in other states. Corrects a reference in the state plumbing code and expands the definition of licensing boards to include the real estate appraiser examining board. Aligns references in various sections with recent updates to the department's structure.
Division 3 -- Department of Transportation (DOT) -- transfers the rulemaking authority for safety regulations regarding the movement of implements of husbandry and animal-drawn vehicles on roadways from the DOT to the Department of Public Safety (DPS). Changes the deadline for presenting the DOT's proposed budget to the state transportation commission. Grants the DOT director authority to establish divisions within the DOT as needed. Specifies the DOT's responsibility for departmental operations, planning, programming, highway programs, modal programs, and enforcement activities. 
Division 4 -- Department of Education  (DE) -- gives the DE director authority to assign duties to various divisions within DE and allows for the reassignment of specific responsibilities within DE from July 1, 2024. Modifies salary and benefit handling for full-time salaried employees working less than 12 months per year and permits the employment of hourly staff for less than 12 months annually, with specific wage and benefit protocols outlined. Extends certain extracurricular contract and coaching endorsement provisions to employees of the Iowa educational services for the blind and visually impaired program and employees of the Iowa school for the deaf. Introduces a new code section exempting salaried employees of these programs from vacation leave provisions, instead providing for the accrual of personal leave days. References to "professional" staff are replaced with "salaried" staff. Applies procedures regarding staff discretion and dismissal to salaried staff.
Division 5 -- Department of Corrections (DOC) -- clarifies the governing body when a reserve peace officer is employed by the state of Iowa. Removes certain language related to employees of judicial district departments of correctional services due to their integration into the DOC. Community-based corrections facilities under the DOC's responsibilities for offender control, treatment, and rehabilitation. Adjusts provisions regarding district directors' duties, authority, and compensation. Modifies the coordination between the DOC and judicial district departments for inmate quartering and supervision after working hours. 
Division 6 -- Department of Revenue (DOR) -- specifies that the Iowa Lottery Division is a division within DOR. Changes various provisions governing the duties of the Iowa Lottery administrator, including reporting requirements and board meeting procedures. Grants the DOR the authority to operate self-service kiosks for lottery ticket distribution and adjust distribution requirements accordingly. Makes adjustments to sections regarding lottery retailer selection, license handling, prize awards, and security protocols, replacing outdated terms and clarifying responsibilities. Establishes an exception for the Iowa Lottery Division within DOR's authority to establish, abolish, and consolidate divisions. 
Division 7 -- Iowa Department of Workforce Development (IWD) --  includes the Supplemental Nutrition Assistance Program Employment and Training Program, which is jointly administered with HHS, in the list of programs managed by the IWD. Removes the requirement for community colleges to jointly implement adult education and literacy programs with IWD. However, IWD is still mandated to consult with community colleges when establishing standards and adopting rules for administering the program.
Division 8 -- Department of Public Safety (DPS) -- removes the requirement for the director of the Office of Drug Control Policy to submit an annual report to the governor and general assembly by November 1 of each year regarding activities and programs related to drug enforcement, substance use disorder treatment, and prevention and education programs. 
Division 9 -- Economic Development Authority (IEDA) and Iowa Finance Authority (IFA) Reports -- requires the IEDA director to submit an annual report to the authority board and the general assembly by January 31 each year detailing their activities from the previous fiscal year. Requires the IFA director to submit a similar annual report to the governor and general assembly by January 15 each year.
Division 10 -- Economic Development Authority (IEDA) and Iowa Finance Authority (IFA) Programs -- removes requirements for the IEDA to run certain internship programs and shifts this responsibility to the Iowa Department of Workforce Development. Ensures that any internships or financial aid awarded by the IEDA before the change remains valid under the new setup.
Division 11 -- Department of Health and Human Services (HHS) -- removes the requirement for the council to approve or disapprove licensing applications and related cases. Transfers certain licensing responsibilities for substance use disorder programs from the council to HHS. Updates confidentiality provisions for program records and specifies individuals and officials who may access confidential information. Adjusts procedures for debt setoffs and empowers the HHS director to engage in specific real estate activities. Modifies the process for people who owe child support to withdraw their objections by allowing written requests to be submitted to child support services.
Division 12 -- State Salaries of Appointed State Officers -- Establishes salary ranges for certain appointed state officers for fiscal years starting from July 1, 2024. Specifies that the governor shall set salaries for nonelected individuals appointed within the executive branch of state government. Salary determination considers factors such as the person's experience, changes in job duties, performance, and subordinate salaries. However, certain positions have salary determination responsibilities assigned to specific entities. 
Division 13 -- Office for State-Federal Relations -- Removes the requirement for the office to be situated in Washington, D.C., and instead states that the State-Federal Relations Office is administratively attached to the Office of the Governor.
Division 14 -- Historical Sites -- Removes the requirement for state agencies owning historical sites, except the state board of regents, to enter agreements with the Department of Administrative Services (DAS) for site management. Instead, it mandates DAS to consult with the state historic preservation officer when establishing standards and criteria for historical property acquisition and preservation. Adds developing preservation standards for historical sites to the duties of the state historic preservation officer. Requires state agencies owning historical sites to consult with the preservation officer before making modifications that could affect the site's listing on the national register of historic places and allows them to enter agreements with the preservation officer for site management. 
Division 15 -- Department of Management -- Mandates DOM to oversee a statewide integrated justice information system. Shifts responsibilities from HHS to DOM for maintaining an Iowa statistical analysis center, an Iowa correctional policy project, and a multi agency information system for juvenile and adult court records.

Proposes an ammendment to Iowa's Constitution to regulate tax bills and set one flat rate for individual income taxes. The ammendment would require that any bill raising income tax rates or adding new income-based taxes be approved by at least two-thirds of both the Iowa House of Representatives and the Iowa Senate. Additionally, it forbids Iowa from having different income tax rates for different income levels. If passed, the ammendment would need to be voted on again by the next general assembly before being approved by the public.

Repeals gender balance requirements for appointed local and state government boards, councils, commissions. Signed by governor April 3, 2024. Takes effect July 1, 2024.

Makes numerous changes to state boards, commissions, committees, councils, and other state government entities.

Division 1 – Combines the Economic Emergency Fund (EEF) and the Cash Reserve Fund (CRF), and then eliminates the EEF.  Raises the cap on the CRF from 7.5% to 12.5% of adjusted revenue estimates. Allows expenditures that would have been authorized under the EEF to be acceptable under the CRF.

Division 2 – Replaces current Iowa law that implements a flat 3.9% income tax rate by 2026 with a 3.65% income tax rate in 2024 (applicable retroactively to 1/1/2024).  Moves the flat income tax rate down to 3.5% in 2025 and subsequent years.

Division 3 – Requires withholding to be adjusted within 60 days and provides penalties for over-withholding.  Effective upon enactment.

Division 4 – Raises on 1/1/2025 the threshold from $200 to $1000 the amount of estimated tax liability a taxpayer can have before they need to make estimated payments.

Division 5 – Ensures that lump sum distributions from retirement accounts are exempt from income taxes. The previously passed law exempted retirement income, but did not specifically exempt qualified lump sum distributions.  Retroactive to 1/1/2024.

Division 6 – Alters the property tax calculation on child care facilities to allow them to be taxed at the same rate as residential property.  Current law taxes commercial properties this way only on the first $150,000 of value and then taxes value above $150,000 at 90% of assessed value.  Retroactive to 1/1/2024.

Division 7 – Makes modifications to the unemployment trust fund and allocations into that fund.  Reduces by half the statewide average weekly wage contribution flowing into the fund and makes a number of other changes to the system.

Appropriates $2.2 billion for health and human services programs (including Medicaid) for the fiscal year beginning July 1, 2024 (FY 2025).  This is an increase of $63.1 million. Appropriates $467.7 million from other funds (a decrease of $540,000). Aging & Disability Services ($19,088,714): Increases funding for department duties by $155,157. Eliminates line items but not the responsibility for the work. Codifies area agency on aging language that has been in the budget for more than a decade. Because of budget restructuring, this includes aging programs, general administration, field operations, state supplementary assistance, health program operations, Conner decree training, and the family support subsidy/child at home pilot. Behavioral Health ($24,400,114):  No change in funding. Continues two line items at current levels (Children's Behavioral Health System - $300,000; managed care substance use treatment transfer - $950,000). Maintains $1.75 million transfer from sports wagering receipts fund. Because of budget restructuring, this includes general administration, addictive disorders, and healthy children/families. Public Health ($22,916,821): No change in funding.  No change in earmarked funds: brain injury facilitators and training ($1.055 million), epilepsy education and support ($144,000), psychology postdoctoral internships ($48,000), SafeNetRx prescription drug donation program ($600,000), rural health clinics ($25,000), free clinics ($334,000), specialty care access ($225,000), medical residencies ($2.1 million), rural psychiatric residencies ($800,000), psychiatric training for PAs & nurse practitioners ($150,000), Center of Excellence program ($425,000), and family medicine/obstetrics fellowship ($560,000). Because of budget restructuring, this includes healthy children/families, chronic conditions, community capacity, essential public health services, infectious diseases, public protection, congenital & inherited disorders registry, and psychiatric residency funding. Community Access ($68,043,944): This is a decrease of $2.1 million (primarily due to decreased enrollment in PROMISE JOBS and Family Investment Program/FIP). Because of budget restructuring, this includes some aging programs, human rights administration, general administration, field operations, FIP/Promise Jobs, Medicaid, children's health insurance (hawk-I), volunteer programs, chronic conditions, community capacity, and public protection).  No change for First Five Health Mental Development programs ($3.1 million), pregnancy prevention grants ($1.9 million), childcare assistance ($47.2 million), and child protective services ($62.4 million). Adds new $3 million appropriation for a new kinship stipend program (paying family members or fictive kin as foster parents for relative children placed in their care). Increases Medicaid by $84.4 million (total $1.63 billion). This includes increases of $40.9 million increase to meet expected need, $16.5 million to replace federal funds used to increase HCBS waiver rates (aka "ARPA backfill"), and $3.6 million for children's health insurance program to meet expected need. Does NOT include $14.6 million to increase HCBS waiver rates by 5% as requested by the Governor. No change in funding for nursing home facility improvements ($900,000), and state family planning services ($3.4 million).  Reimbursement Rates: No change in Medicaid or child welfare reimbursement rates. Health Program Operations ($39,597,231): This is an increase of $1.2 million due to contract increases. No change for state poison control center ($750,000).  Childcare Assistance ($34,966,931): No change in funding. Early Intervention & Supports ($35,277,739): No change in funding for human rights administration, community advocacy and services, early childhood Iowa ($29,256,799), More Options for Maternal Support ($1 million), and child abuse prevention (no longer line item).  Child Protective Services ($164,644,037): This is a $2.6 million increase for programs that include child and family services and the adoption subsidy.  No change in funding for decategorization ($1,717,000), group foster care ($40.5 million), court-ordered services ($748,000), child protection center grants ($1,658,000), Project Harmony for child abuse victims ($227,000), and adoption subsidies ($40.9 million). Increases funding for Preparation for Adult Living by $334,000 (total $4,359,500). State Specialty Care Services ($100,006,128): This is a small increase ($35,259) for state-owned institutions. Increases Cherokee MHI by $2.6 million, Independence MHI by $3.1 million, sex offender civil commitment at Cherokee MHI by $1.9 million, and Eldora State Training School by $961,124. No change in funding for Woodward State Resource Center ($13.4 million) and reduces funding for the Glenwood State Resource Center by $11 million ($5.3 million). Administration & Compliance ($21,194,894): Small increase of $93,902.  No change in funding for ABLE Savings Account administration ($200,000) and long-term care ombudsman ($1,148,959).  Other: Gives HHS the ability to transfer funds as needed to continue realignment and maximize federal support. Allows HHS to use funds that are not used for their original purpose to pay for the Thrive Iowa Program. Increase the number of rural psychiatric residencies from six to eight annually. Allows HHS to use SSA and FIP unused funds to support "program integrity, compliance, and efficiency." Allows the Office of Public Guardian to carry over unused funds into the next fiscal year. Splits LIHEAP (Low Income Home Energy Assistance Program) administration between contractors (8.4%) and HHS (1.6%); currently the cap on administration is 10% with $377,000 going to HHS.  Removes language about an additional amount money to be transferred from the beer & liquor control fund for substance use disorder treatment (legislators have never transferred more than the base $2 million). Requires HHS to collaborate with the Department of Revenue on tobacco control enforcement. Requires the legislature to appropriate enough money each year to fully fund personal needs allowance (which is currently $50/month) and requires the allowance to be increased at the same percentage and at same time federal SSI benefits are increased. Transfers the replacement generation tax that had been going to mental health property tax relief to Medicaid (remaining funds were minimal = $12,954). Transfers remaining funds in the Medicaid Fraud Fund ($150,000) to Medicaid. Allows Medicaid recipients residing in a State MHI to keep their Medicaid eligibility during their stay at the MHI. Permits the HHS to bill for State Resource Center services utilizing a scope of services approach in a manner that does not shift costs between the Medicaid program, the MHDS regions, or other State Resource Center funding sources. Moves juvenile detention funding and current formula into Code (so it doesn't have to be in the budget each year).  States that child support recovery for state foster care payments does not apply when a child is placed with a relative or fictive kin who is not licensed as a child foster care provider. Requires nursing home quality assurance assessments to be paid monthly (rather than quarterly). Removes the requirement that quality assurance assessment forms be submitted within 30 days of the end of each calendar quarter. Includes standing (automatic) appropriation for child abuse prevention ($233,000), psychiatry residencies ($1.1 million), and the congenital and inherited disorders registry ($224,000). Requires HHS to work with the Iowa Health Information Network to enhance the program to give Iowans access and use their health information. You can find the nonpartisan staff review (dated 4/9/24) at: https://www.legis.iowa.gov/docs/publications/NOBA/1448980.pdf.

This bill replaces the income tax rate in the Iowa Code (set to hit 3.9% in 2026) with a rate of 3.775% in 2026 and 3.65% in 2027.  The bill also sets up a long-term plan to eventually eliminate Iowa’s income tax.  The bill would invest roughly $2.6 Billion of the Taxpayer Relief Fund (current balance of more than $3 Billion) and then transfer 5% of the proceeds each year into an Income Tax Elimination Fund which could be used to ratchet down the income tax rate until it eventually hits zero.  The funds would be managed by the Iowa Public Employee Retirement System (IPERS).

Division I – Income Tax Cut – Current law ratchets the income tax down to 3.9% by 2026.  This bill would instead lower that rate to 3.8% and have it take effect in 2025.  Also lowers the alternative minimum tax from 4.4 to 4.3%, also in 2025. 

Division II – Targeted Jobs Withholding Credit – Makes changes to the pilot program (in use in Sioux City and some other border communities), including raising an employer’s qualifying investment from $500K to $1M and changing the program’s sunset date from June 30, 2024 to June 30, 2027.

Division III – Franchise Tax changes dealing with financial institutions’ investments.

Division IV – Makes a number of property tax corrective changes, including changing dates by which local governments need to file reports with the Department of Management, the dates statements to taxpayers needs to be sent out, the information included in those statements, the examples provided to the taxpayers, etc.  This division allows Lee County to decide their courthouse/county seat situation. The division takes steps to protect the confidentiality of homestead credit applicants over the age of 65.  This division also extends by 3 years certain housing TIF projects that faced challenges due to COVID supply chain shortages.  

Division V – Compensation Elected County Officials – The bill makes a number of changes, including allowing county supervisors to establish or eliminate county compensation boards.  

Division VI – City & County Levy Growth Limitations – The bill adds a bracket into the calculations on how much cities and counties are allowed to raise their levies.  Under last year’s bill, there were three: 0% to 3% increase in growth is allowed to maintain their levy, 3%-6% growth is allowed to increase their levy by 2%, and growth exceeding 6% is allowed to increase their levy by 3%.  Under the bill, the new brackets would be: 0% to 2.75% allowed to maintain same levy, 2.75% to 4% allowed a 1% increase, 4% to 6% allowed a 2% increase, over 6% allowed a 3% increase. 

Division VII – Public Utility/Pipeline property tax assessment limitations – Under current law, property owned by such entities are assessed by the Department of Revenue and distributed to the local entities.  The bill removes the state part of this returning it to the local governments, and institutes a 2% per year rollback until those properties are assessed at 90% in 2029 (same as commercial). 

Division VIII – Taxpayer Relief Fund – The bill makes changes to the thresholds used when State revenues come in at certain levels, and how those funds are transferred.  

Division IX – Makes a corrective change to the MEGA sites bill, SF 574.