Bill Text: IA SSB1253 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to state and local government financing, programs, and operations, by modifying provisions relating to mental health and disability services funding, school district funding, commercial and industrial property tax replacement payments, and other specified tax provisions, making appropriations, providing penalties, and including effective date, applicability, and retroactive applicability provisions.(See SF 587.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2021-03-25 - Committee report approving bill, renumbered as SF 587. [SSB1253 Detail]
Download: Iowa-2021-SSB1253-Introduced.html
Senate
Study
Bill
1253
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
DAWSON)
A
BILL
FOR
An
Act
relating
to
state
and
local
government
financing,
1
programs,
and
operations,
by
modifying
provisions
relating
2
to
mental
health
and
disability
services
funding,
school
3
district
funding,
commercial
and
industrial
property
tax
4
replacement
payments,
and
other
specified
tax
provisions,
5
making
appropriations,
providing
penalties,
and
including
6
effective
date,
applicability,
and
retroactive
applicability
7
provisions.
8
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
9
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DIVISION
I
1
MENTAL
HEALTH
FUNDING
2
Section
1.
Section
123.38,
subsection
2,
paragraph
b,
Code
3
2021,
is
amended
to
read
as
follows:
4
b.
For
purposes
of
this
subsection
,
any
portion
of
license
5
or
permit
fees
used
for
the
purposes
authorized
in
section
6
331.424,
subsection
1
,
paragraph
“a”
,
subparagraphs
(1)
and
7
(2),
and
in
section
331.424A
,
shall
not
be
deemed
received
8
either
by
the
division
or
by
a
local
authority.
9
Sec.
2.
Section
218.99,
Code
2021,
is
amended
to
read
as
10
follows:
11
218.99
Counties
to
be
notified
of
patients’
personal
12
accounts.
13
The
administrator
in
control
of
a
state
institution
shall
14
direct
the
business
manager
of
each
institution
under
the
15
administrator’s
jurisdiction
which
is
mentioned
in
section
16
331.424,
subsection
1
,
paragraph
“a”
,
subparagraphs
(1)
and
17
(2),
and
for
which
services
are
paid
under
section
331.424A
18
by
the
county
of
residence
or
a
mental
health
and
disability
19
services
region
,
to
quarterly
inform
the
county
of
residence
20
of
any
patient
or
resident
who
has
an
amount
in
excess
of
two
21
hundred
dollars
on
account
in
the
patients’
personal
deposit
22
fund
and
the
amount
on
deposit.
The
administrators
shall
23
direct
the
business
manager
to
further
notify
the
county
of
24
residence
at
least
fifteen
days
before
the
release
of
funds
in
25
excess
of
two
hundred
dollars
or
upon
the
death
of
the
patient
26
or
resident.
If
the
patient
or
resident
has
no
residency
in
27
this
state
or
the
person’s
residency
is
unknown,
notice
shall
28
be
made
to
the
director
of
human
services
and
the
administrator
29
in
control
of
the
institution
involved.
30
Sec.
3.
Section
225.24,
Code
2021,
is
amended
to
read
as
31
follows:
32
225.24
Collection
of
preliminary
expense.
33
Unless
a
committed
private
patient
or
those
legally
34
responsible
for
the
patient’s
support
offer
to
settle
the
35
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amount
of
the
claims,
the
regional
administrator
for
the
1
person’s
county
of
residence
shall
collect,
by
action
if
2
necessary,
the
amount
of
all
claims
for
per
diem
and
expenses
3
that
have
been
approved
by
the
regional
administrator
for
the
4
county
and
paid
by
the
regional
administrator
as
provided
under
5
section
225.21
.
Any
amount
collected
shall
be
credited
to
the
6
county
mental
health
and
disabilities
disability
services
fund
7
region
combined
account
created
in
accordance
with
section
8
331.424A
331.391
.
9
Sec.
4.
Section
249N.8,
subsection
1,
Code
2021,
is
amended
10
to
read
as
follows:
11
1.
Biennially,
a
report
of
the
results
of
a
review,
by
12
county
and
region,
of
mental
health
services
previously
funded
13
through
taxes
levied
by
counties
pursuant
to
section
331.424A
,
14
Code
2021,
or
funds
administered
by
a
mental
health
and
15
disability
services
region
that
are
funded
during
the
reporting
16
period
under
the
Iowa
health
and
wellness
plan.
17
Sec.
5.
Section
331.389,
subsection
1,
paragraph
b,
Code
18
2021,
is
amended
to
read
as
follows:
19
b.
If
a
county
has
been
exempted
prior
to
July
1,
2014,
from
20
the
requirement
to
enter
into
a
regional
service
system,
the
21
county
and
the
county’s
board
of
supervisors
shall
fulfill
all
22
requirements
and
be
eligible
as
a
region
under
this
chapter
and
23
chapter
chapters
222,
225,
225C
,
226,
227,
229,
and
230
for
a
24
regional
service
system,
regional
service
system
management
25
plan,
regional
governing
board,
and
regional
administrator,
26
and
any
other
provisions
applicable
to
a
region
of
counties
27
providing
local
mental
health
and
disability
services.
28
Additionally,
a
county
exempted
under
this
subsection
shall
be
29
considered
a
region
for
purposes
of
chapter
426B.
30
Sec.
6.
Section
331.389,
subsection
5,
paragraph
a,
31
subparagraph
(2),
Code
2021,
is
amended
to
read
as
follows:
32
(2)
Reduce
the
amount
of
the
annual
state
funding
provided
33
for
the
regional
service
system
or
exempted
county,
including
34
amounts
received
under
section
426B.3
or
from
the
risk
pool
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under
section
426B.6
,
not
to
exceed
fifteen
percent
of
the
1
amount.
2
Sec.
7.
Section
331.391,
subsection
1,
Code
2021,
is
amended
3
to
read
as
follows:
4
1.
The
funding
under
the
control
of
the
governing
board
5
shall
be
maintained
in
a
combined
account
,
in
separate
county
6
accounts
that
are
under
the
control
of
the
governing
board,
or
7
pursuant
to
other
arrangements
authorized
by
law
that
limit
the
8
administrative
burden
of
such
control
while
facilitating
public
9
scrutiny
of
financial
processes
.
A
county
exempted
under
10
section
331.389,
subsection
1,
shall
maintain
a
county
mental
11
health
and
disability
services
fund
for
the
deposit
of
funding
12
received
under
section
426B.3
or
from
the
risk
pool
under
13
section
426B.6
and
appropriations
specifically
authorized
to
be
14
made
from
the
county
mental
health
and
disability
services
fund
15
shall
not
be
made
from
any
other
fund
of
the
county.
A
county
16
mental
health
and
disability
services
fund
established
by
an
17
exempt
county,
to
the
extent
feasible,
shall
be
considered
to
18
be
the
same
as
a
region
combined
account
and
shall
be
subject
19
to
the
same
requirements
as
a
region’s
combined
account.
20
Sec.
8.
Section
331.391,
subsection
4,
paragraphs
a
and
b,
21
Code
2021,
are
amended
to
read
as
follows:
22
a.
If
a
region
is
meeting
the
financial
obligations
for
23
implementation
of
its
regional
service
system
management
plan
24
for
a
fiscal
year
and
residual
funding
is
anticipated,
the
25
regional
administrator
shall
may
reserve
an
adequate
amount
of
26
unobligated
and
unencumbered
funds
for
cash
flow
of
expenditure
27
obligations
in
the
next
fiscal
year.
28
b.
Each
region
shall
certify
to
the
department
of
management
29
human
services
on
or
before
December
1,
2022
2021
,
and
each
30
December
1
thereafter,
the
amount
of
the
region’s
cash
flow
31
amount
in
the
combined
account
that
is
attributable
to
each
32
county
within
the
region
based
upon
each
county’s
proportionate
33
amount
of
funding
and
contributions
to
the
region
or
other
34
methodology
specified
in
the
regional
governance
agreement
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or
certify
the
cash
flow
amount
for
each
separate
county
1
account
that
is
under
the
control
of
the
governing
board
at
the
2
conclusion
of
the
most
recently
completed
fiscal
year.
3
Sec.
9.
Section
331.391,
subsection
4,
paragraph
c,
Code
4
2021,
is
amended
by
striking
the
paragraph.
5
Sec.
10.
Section
331.392,
subsection
4,
paragraph
a,
Code
6
2021,
is
amended
to
read
as
follows:
7
a.
Methods
for
pooling,
management,
and
expenditure
of
the
8
funding
under
the
control
of
the
regional
administrator.
If
9
the
agreement
does
not
provide
for
pooling
of
the
participating
10
county
moneys
in
a
single
fund,
the
agreement
shall
specify
how
11
the
participating
county
moneys
will
be
subject
to
the
control
12
of
the
regional
administrator.
13
Sec.
11.
Section
331.393,
subsection
10,
Code
2021,
is
14
amended
to
read
as
follows:
15
10.
The
director’s
approval
of
a
regional
plan
shall
not
be
16
construed
to
constitute
certification
of
the
respective
county
17
budgets
or
of
the
region’s
budget.
18
Sec.
12.
Section
331.394,
subsection
4,
Code
2021,
is
19
amended
to
read
as
follows:
20
4.
If
a
county
of
residence
is
part
of
a
mental
health
and
21
disability
services
region
that
has
agreed
to
pool
funding
and
22
liability
for
services,
the
The
responsibilities
of
the
county
23
under
law
regarding
such
mental
health
and
disability
services
24
shall
be
performed
on
behalf
of
the
county
by
the
regional
25
administrator.
The
county
of
residence
or
the
county’s
mental
26
health
and
disability
services
region
,
as
applicable,
is
27
responsible
for
paying
the
public
costs
of
the
mental
health
28
and
disability
services
that
are
not
covered
by
the
medical
29
assistance
program
under
chapter
249A
and
are
provided
in
30
accordance
with
the
region’s
approved
service
management
plan
31
to
persons
who
are
residents
of
the
county
or
region.
32
Sec.
13.
Section
331.424A,
subsection
1,
paragraph
b,
Code
33
2021,
is
amended
by
striking
the
paragraph.
34
Sec.
14.
Section
331.424A,
subsection
3,
Code
2021,
is
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amended
to
read
as
follows:
1
3.
a.
County
revenues
from
taxes
and
other
sources
2
designated
by
a
county
for
mental
health
and
disabilities
3
services
shall
be
credited
to
the
county
mental
health
and
4
disabilities
services
fund
which
shall
be
created
by
the
5
county.
The
Until
the
required
transfer
of
funds
under
6
paragraph
“b”
,
the
board
shall
make
appropriations
from
the
fund
7
for
payment
of
services
provided
under
the
regional
service
8
system
management
plan
approved
pursuant
to
section
331.393
.
9
The
For
fiscal
years
beginning
before
July
1,
2022,
the
county
10
may
pay
for
the
services
in
cooperation
with
other
counties
11
by
pooling
appropriations
from
the
county
services
fund
with
12
appropriations
from
the
county
services
fund
of
other
counties
13
through
the
county’s
regional
administrator,
or
through
another
14
arrangement
specified
in
the
regional
governance
agreement
15
entered
into
by
the
county
under
section
331.392
.
16
b.
Notwithstanding
section
331.432,
subsection
3,
upon
17
conclusion
of
the
fiscal
year
beginning
July
1,
2021,
except
18
for
an
exempt
county
under
section
331.391,
subsection
1,
19
the
county
treasurer
shall
transfer
the
remaining
balance
of
20
the
county’s
county
services
fund
created
under
paragraph
21
“a”
,
including
all
unobligated
and
unencumbered
funds,
to
the
22
county’s
region
to
which
the
county
belongs
in
the
fiscal
year
23
beginning
July
1,
2022,
for
deposit
in
the
region’s
combined
24
account
under
section
331.391.
25
Sec.
15.
Section
331.424A,
subsection
4,
paragraph
a,
Code
26
2021,
is
amended
to
read
as
follows:
27
a.
An
amount
of
unobligated
and
unencumbered
funds,
as
28
specified
in
the
regional
governance
agreement
entered
into
29
by
the
county
under
section
331.392
,
shall
,
for
fiscal
years
30
beginning
before
July
1,
2022,
be
reserved
in
the
county
31
services
fund
to
address
cash
flow
obligations
in
the
next
32
fiscal
year
,
subject
to
the
limitations
of
this
subsection
.
33
Sec.
16.
Section
331.424A,
subsection
4,
paragraphs
c
and
d,
34
Code
2021,
are
amended
by
striking
the
paragraphs.
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Sec.
17.
Section
331.424A,
subsections
5,
6,
and
9,
Code
1
2021,
are
amended
to
read
as
follows:
2
5.
Receipts
from
the
state
or
federal
government
for
fiscal
3
years
beginning
before
July
1,
2022,
for
the
mental
health
4
and
disability
services
administered
or
paid
for
by
a
county
5
shall
be
credited
to
the
county
services
fund,
including
moneys
6
distributed
to
the
county
from
the
department
of
human
services
7
and
moneys
allocated
under
chapter
426B
.
8
6.
For
each
fiscal
year
beginning
before
July
1,
2022
,
the
9
county
shall
certify
a
levy
for
payment
of
services.
For
each
10
such
fiscal
year,
county
revenues
from
taxes
imposed
by
the
11
county
credited
to
the
county
services
fund
shall
not
exceed
an
12
amount
equal
to
the
county
budgeted
amount
for
the
fiscal
year.
13
A
levy
certified
under
this
section
is
not
subject
to
the
14
appeal
provisions
of
section
331.426
or
to
any
other
provision
15
in
law
authorizing
a
county
to
exceed,
increase,
or
appeal
a
16
property
tax
levy
limit.
17
9.
a.
For
the
fiscal
year
beginning
July
1,
2017,
and
18
each
subsequent
fiscal
year
beginning
before
July
1,
2022
,
the
19
county
budgeted
amount
determined
for
each
county
shall
be
the
20
amount
necessary
to
meet
the
county’s
financial
obligations
for
21
the
payment
of
services
provided
under
the
regional
service
22
system
management
plan
approved
pursuant
to
section
331.393
,
23
not
to
exceed
an
amount
equal
to
the
product
of
the
regional
24
per
capita
expenditure
target
amount
twenty-one
dollars
and
25
fourteen
cents
multiplied
by
the
county’s
population
,
and,
for
26
fiscal
years
beginning
on
or
after
July
1,
2023,
reduced
by
27
the
amount
of
the
county’s
cash
flow
reduction
amount
for
the
28
fiscal
year
calculated
under
subsection
4
,
if
applicable
.
29
b.
If
a
county
officially
joins
a
different
region,
the
30
county’s
budgeted
amount
for
a
fiscal
year
beginning
before
31
July
1,
2022,
shall
be
the
amount
necessary
to
meet
the
32
county’s
financial
obligations
for
payment
of
services
provided
33
under
the
new
region’s
regional
service
system
management
plan
34
approved
pursuant
to
section
331.393
,
not
to
exceed
an
amount
35
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equal
to
the
product
of
the
new
region’s
regional
per
capita
1
expenditure
target
amount
twenty-one
dollars
and
fourteen
cents
2
multiplied
by
the
county’s
population
,
and,
for
fiscal
years
3
beginning
on
or
after
July
1,
2023,
reduced
by
the
amount
of
4
the
county’s
cash
flow
reduction
amount
for
the
fiscal
year
5
calculated
under
subsection
4
,
if
applicable
.
6
Sec.
18.
Section
331.424A,
Code
2021,
is
amended
by
adding
7
the
following
new
subsection:
8
NEW
SUBSECTION
.
10.
This
section
is
repealed
July
1,
2022.
9
Sec.
19.
Section
331.432,
subsection
3,
Code
2021,
is
10
amended
by
striking
the
subsection
and
inserting
in
lieu
11
thereof
the
following:
12
3.
Payments
or
transfers
of
moneys
from
any
fund
of
the
13
county
to
a
mental
health
and
disability
services
region’s
14
combined
account
under
section
331.391
are
prohibited.
15
Sec.
20.
Section
347.7,
subsection
1,
paragraph
c,
Code
16
2021,
is
amended
by
striking
the
paragraph.
17
Sec.
21.
Section
426B.1,
subsection
2,
Code
2021,
is
amended
18
to
read
as
follows:
19
2.
Moneys
shall
be
distributed
from
the
property
tax
relief
20
fund
to
counties
for
the
mental
health
and
disability
regional
21
service
system
for
mental
health
and
disabilities
services,
in
22
accordance
with
the
appropriations
made
to
the
fund
and
other
23
statutory
requirements.
24
Sec.
22.
Section
426B.2,
Code
2021,
is
amended
to
read
as
25
follows:
26
426B.2
Property
tax
relief
fund
payments.
27
The
director
of
human
services
shall
draw
warrants
on
the
28
property
tax
relief
fund,
payable
to
the
county
treasurer
29
regional
administrator
in
the
amount
due
to
a
county
mental
30
health
and
disability
services
region
in
accordance
with
31
statutory
requirements,
and
mail
the
warrants
to
the
county
32
auditors
regional
administrator
in
July
and
January
of
each
33
year.
34
Sec.
23.
NEW
SECTION
.
426B.3
Mental
health
and
disability
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services
regional
supplement
fund.
1
1.
A
mental
health
and
disability
services
regional
2
supplement
fund
is
created
in
the
office
of
the
treasurer
of
3
state
under
the
authority
of
the
department
of
human
services.
4
The
fund
shall
be
separate
from
the
general
fund
of
the
state
5
and
the
balance
in
the
fund
shall
not
be
considered
part
of
6
the
balance
of
the
general
fund
of
the
state.
Moneys
in
the
7
fund
include
appropriations
made
to
the
fund
and
other
moneys
8
deposited
into
the
fund.
Moneys
in
the
fund
shall
be
used
9
solely
for
purposes
of
making
regional
supplement
payments
10
under
this
section.
11
2.
For
each
fiscal
year
beginning
on
or
after
July
1,
2021,
12
there
is
appropriated
from
the
general
fund
of
the
state
to
the
13
mental
health
and
disability
services
regional
supplement
fund
14
an
amount
necessary
to
make
all
regional
supplement
payments
15
under
this
section
for
that
fiscal
year.
16
3.
For
each
fiscal
year
beginning
on
or
after
July
1,
2021,
17
the
moneys
available
in
a
fiscal
year
in
the
mental
health
and
18
disability
services
state
supplement
fund
are
appropriated
to
19
the
department
of
human
services
and
shall
be
distributed
to
20
each
mental
health
and
disability
services
region,
as
defined
21
in
section
426B.6,
on
a
per
capita
basis
calculated
under
22
subsection
4
using
each
region’s
population,
as
defined
in
23
section
426B.6,
for
that
fiscal
year.
24
4.
The
amount
of
each
region’s
regional
supplement
payment
25
shall
be
determined
as
follows:
26
a.
For
the
fiscal
year
beginning
July
1,
2021,
an
amount
27
equal
to
the
product
of
fifteen
dollars
and
eighty-six
cents
28
multiplied
by
the
sum
of
the
region’s
population
for
the
fiscal
29
year.
30
b.
For
the
fiscal
year
beginning
July
1,
2022,
an
amount
31
equal
to
the
product
of
thirty-eight
dollars
multiplied
by
the
32
sum
of
the
region’s
population
for
the
fiscal
year.
33
c.
For
the
fiscal
year
beginning
July
1,
2023,
an
amount
34
equal
to
the
product
of
forty
dollars
multiplied
by
the
sum
of
35
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the
region’s
population
for
the
fiscal
year.
1
d.
For
the
fiscal
year
beginning
July
1,
2024,
an
amount
2
equal
to
the
product
of
forty-two
dollars
multiplied
by
the
sum
3
of
the
region’s
population
for
the
fiscal
year.
4
e.
(1)
For
the
fiscal
year
beginning
July
1,
2025,
and
each
5
succeeding
fiscal
year,
an
amount
equal
to
the
product
of
the
6
sum
of
the
region’s
population
for
the
fiscal
year
multiplied
7
by
the
sum
of
the
dollar
amount
used
to
calculate
the
regional
8
supplement
payments
under
this
subsection
for
the
immediately
9
preceding
fiscal
year
plus
the
regional
supplement
growth
10
factor
for
the
fiscal
year.
11
(2)
For
purposes
of
this
paragraph,
“regional
supplement
12
growth
factor”
for
a
fiscal
year
is
an
amount
equal
to
the
13
product
of
the
dollar
amount
used
to
calculate
the
regional
14
supplement
payments
under
this
subsection
for
the
immediately
15
preceding
fiscal
year
multiplied
by
the
percent
increase,
if
16
any,
in
the
amount
of
sales
tax
revenue
deposited
into
the
17
general
fund
of
the
state
under
section
423.2A,
subsection
18
1,
paragraph
“a”
,
less
the
transfers
required
under
section
19
423.2A,
subsection
2,
between
the
fiscal
year
beginning
three
20
years
prior
to
the
applicable
fiscal
year
and
the
fiscal
year
21
beginning
two
years
prior
to
the
applicable
year,
but
not
to
22
exceed
one
and
one-half
percent.
23
5.
Regional
supplement
payments
received
by
a
region
24
shall
be
deposited
in
the
region’s
combined
account
under
25
section
331.391
and
used
solely
for
providing
mental
health
26
and
disability
services
under
the
regional
service
system
27
management
plan.
28
6.
Regional
supplement
payments
from
the
mental
health
29
and
disability
services
regional
supplement
fund
shall
be
30
paid
in
quarterly
installments
to
the
appropriate
regional
31
administrator
in
July,
October,
January,
and
April
of
each
32
fiscal
year.
33
7.
a.
For
the
fiscal
year
beginning
July
1,
2021,
each
34
mental
health
and
disability
services
region
for
which
the
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amount
certified
during
the
fiscal
year
under
section
331.391,
1
subsection
4,
paragraph
“b”
,
exceeds
forty
percent
of
the
2
proposed
gross
expenditures
of
the
region
for
the
fiscal
year,
3
the
remaining
quarterly
payments
of
the
region’s
regional
4
supplement
payment
shall
be
reduced
by
an
amount
equal
to
the
5
amount
by
which
the
region’s
amount
certified
under
section
6
331.391,
subsection
4,
paragraph
“b”
,
exceeds
forty
percent
of
7
the
proposed
gross
expenditures
of
the
region
for
the
fiscal
8
year,
but
the
amount
of
the
reduction
shall
not
exceed
the
9
total
amount
of
the
region’s
regional
supplement
payment
for
10
the
fiscal
year.
If
the
region’s
remaining
quarterly
payments
11
are
insufficient
to
effectuate
the
required
reductions
under
12
this
paragraph,
the
region
is
required
to
pay
to
the
department
13
of
human
services
any
amount
for
which
the
reduction
in
14
quarterly
payments
could
not
be
made.
The
amount
of
reductions
15
to
quarterly
payments
and
amounts
paid
to
the
department
under
16
this
paragraph
shall
be
transferred
and
credited
to
the
risk
17
pool
under
section
426B.6.
18
b.
For
the
fiscal
year
beginning
July
1,
2022,
each
mental
19
health
and
disability
services
region
for
which
the
amount
20
certified
during
the
fiscal
year
under
section
331.391,
21
subsection
4,
paragraph
“b”
,
exceeds
twenty
percent
of
the
22
proposed
gross
expenditures
of
the
region
for
the
fiscal
year,
23
the
remaining
quarterly
payments
of
the
region’s
regional
24
supplement
payment
shall
be
reduced
by
an
amount
equal
to
the
25
amount
by
which
the
region’s
amount
certified
under
section
26
331.391,
subsection
4,
paragraph
“b”
,
exceeds
twenty
percent
of
27
the
proposed
gross
expenditures
of
the
region
for
the
fiscal
28
year,
but
the
amount
of
the
reduction
shall
not
exceed
the
29
total
amount
of
the
region’s
regional
supplement
payment
for
30
the
fiscal
year.
If
the
region’s
remaining
quarterly
payments
31
are
insufficient
to
effectuate
the
required
reductions
under
32
this
paragraph,
the
region
is
required
to
pay
to
the
department
33
of
human
services
any
amount
for
which
the
reduction
in
34
quarterly
payments
could
not
be
made.
The
amount
of
reductions
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to
quarterly
payments
and
amounts
paid
to
the
department
under
1
this
paragraph
shall
be
transferred
and
credited
to
the
risk
2
pool
under
section
426B.6.
3
c.
For
the
fiscal
year
beginning
July
1,
2023,
and
each
4
succeeding
fiscal
year,
each
mental
health
and
disability
5
services
region
for
which
an
amount
greater
than
zero
is
6
certified
during
the
fiscal
year
under
section
331.391,
7
subsection
4,
paragraph
“b”
,
the
remaining
quarterly
payments
8
of
the
region’s
regional
supplement
payment
shall
be
reduced
by
9
an
amount
equal
to
the
amount
certified
under
section
331.391,
10
subsection
4,
paragraph
“b”
,
but
the
amount
of
the
reduction
11
shall
not
exceed
the
total
amount
of
the
region’s
regional
12
supplement
payment
for
the
fiscal
year.
If
the
region’s
13
remaining
quarterly
payments
are
insufficient
to
effectuate
14
the
required
reductions
under
this
paragraph,
the
region
is
15
required
to
pay
to
the
department
of
human
services
any
amount
16
for
which
the
reduction
in
quarterly
payments
could
not
be
17
made.
The
amount
of
reductions
to
quarterly
payments
and
18
amounts
paid
to
the
department
under
this
paragraph
shall
be
19
transferred
and
credited
to
the
risk
pool
under
section
426B.6.
20
Sec.
24.
Section
426B.4,
Code
2021,
is
amended
to
read
as
21
follows:
22
426B.4
Rules.
23
The
mental
health
and
disability
services
commission
shall
24
consult
with
county
representatives
regional
administrators
25
and
the
director
of
human
services
in
prescribing
forms
and
26
adopting
rules
pursuant
to
chapter
17A
to
administer
this
27
chapter
.
28
Sec.
25.
NEW
SECTION
.
426B.6
Risk
pool.
29
1.
For
the
purposes
of
this
chapter,
unless
the
context
30
otherwise
requires:
31
a.
“Mental
health
and
disability
services
region”
means
32
a
mental
health
and
disability
services
region
formed
in
33
accordance
with
section
331.389.
34
b.
“Population”
means,
as
of
July
1
of
the
fiscal
year
35
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preceding
the
fiscal
year
in
which
the
population
figure
is
1
applied,
the
county
population
shown
by
the
latest
preceding
2
certified
federal
census
or
the
latest
applicable
population
3
estimate
issued
by
the
United
States
census
bureau,
whichever
4
is
most
recent.
5
c.
“Regional
administrator”
means
the
regional
administrator
6
of
a
mental
health
and
disability
services
region,
as
defined
7
in
section
331.388.
8
2.
A
risk
pool
is
created
in
the
property
tax
relief
fund
9
under
section
426B.1.
The
pool
shall
consist
of
the
moneys
10
appropriated
or
credited
to
the
pool
by
law,
including
amounts
11
credited
to
the
risk
pool
under
section
426B.3,
subsection
7.
12
For
fiscal
years
beginning
on
or
after
July
1,
2021,
there
is
13
appropriated
from
the
general
fund
of
the
state
to
the
risk
14
pool
the
following
amounts
to
be
used
for
the
purposes
of
this
15
section:
16
a.
For
the
fiscal
year
beginning
July
1,
2021,
nine
million
17
nine
hundred
sixty
thousand
five
hundred
ninety
dollars.
18
b.
For
the
fiscal
year
beginning
July
1,
2022,
five
million
19
one
hundred
seven
thousand
three
hundred
forty
dollars.
20
c.
(1)
For
each
fiscal
year
beginning
on
or
after
July
1,
21
2025,
an
amount
equal
to
the
risk
pool
growth
factor
multiplied
22
by
the
ending
balance
of
the
risk
pool
at
the
conclusion
of
23
the
fiscal
year
ending
June
30
immediately
preceding
the
24
application
deadline
under
subsection
4
for
the
fiscal
year
for
25
which
the
appropriation
is
made.
26
(2)
For
purposes
of
this
paragraph,
the
“risk
pool
growth
27
factor”
for
each
fiscal
year
is
the
percent
increase,
if
any,
in
28
the
amount
of
sales
tax
revenue
deposited
into
the
general
fund
29
of
the
state
under
section
423.2A,
subsection
1,
paragraph
“a”
,
30
less
the
transfers
required
under
section
423.2A,
subsection
31
2,
between
the
fiscal
year
beginning
three
years
prior
to
the
32
applicable
fiscal
year
and
the
fiscal
year
beginning
two
years
33
prior
to
the
applicable
year,
minus
one
and
one-half
percent,
34
and
the
risk
pool
growth
factor
for
any
fiscal
year
shall
not
35
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exceed
three
and
one-half
percent.
1
3.
A
risk
pool
board
is
created.
The
board
shall
consist
of
2
two
county
supervisors,
two
county
auditors,
a
member
of
the
3
mental
health
and
disability
services
commission
who
is
not
a
4
member
of
a
county
board
of
supervisors,
a
member
of
the
county
5
finance
committee
created
in
chapter
333A
who
is
not
an
elected
6
official,
a
representative
of
a
provider
of
mental
health
or
7
developmental
disabilities
services
selected
from
nominees
8
submitted
by
the
Iowa
association
of
community
providers,
9
and
two
staff
members
of
regional
administrators
of
county
10
mental
health
and
disability
services
regions,
all
appointed
11
by
the
governor,
and
one
member
appointed
by
the
director
of
12
human
services.
All
members
appointed
by
the
governor
shall
13
be
subject
to
confirmation
by
the
senate.
Members
shall
serve
14
for
three-year
terms.
A
vacancy
shall
be
filled
in
the
same
15
manner
as
the
original
appointment.
Expenses
and
other
costs
16
of
the
risk
pool
board
members
representing
counties
shall
be
17
paid
by
the
county
of
origin.
Expenses
and
other
costs
of
risk
18
pool
board
members
who
do
not
represent
counties
shall
be
paid
19
by
the
department
of
human
services.
Staff
assistance
to
the
20
board
shall
be
provided
by
the
department
of
human
services.
21
Actuarial
expenses
and
other
direct
administrative
costs
shall
22
be
charged
to
the
pool.
23
4.
To
receive
assistance
from
the
risk
pool,
a
regional
24
administrator
must
apply
to
the
risk
pool
board
on
or
before
25
October
31
preceding
the
fiscal
year
for
which
assistance
is
26
requested.
The
purpose
of
the
assistance
shall
be
to
provide
27
financial
support
for
services
provided
by
the
regional
28
administrator’s
mental
health
and
disability
services
region.
29
The
risk
pool
board
shall
make
its
final
decisions
on
or
30
before
December
15
regarding
acceptance
or
rejection
of
the
31
applications
for
assistance
and
the
total
amount
accepted
shall
32
be
considered
obligated.
33
5.
Basic
eligibility
for
risk
pool
assistance
requires
that
34
a
mental
health
and
disability
services
region
meet
all
of
the
35
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following
conditions:
1
a.
The
mental
health
and
disability
services
region
is
in
2
compliance
with
the
regional
service
system
management
plan
3
requirements
of
section
331.393.
4
b.
(1)
For
applications
for
assistance
for
the
fiscal
year
5
beginning
July
1,
2021,
and
the
fiscal
year
beginning
July
1,
6
2022,
in
the
fiscal
year
that
commenced
two
years
prior
to
the
7
fiscal
year
of
application
for
assistance,
the
ending
balance,
8
under
generally
accepted
accounting
principles,
of
the
mental
9
health
and
disability
services
region’s
combined
services
funds
10
was
equal
to
or
less
than
the
ending
balance
threshold
under
11
subparagraph
(2)
for
the
fiscal
year
for
which
assistance
is
12
requested.
13
(2)
For
purposes
of
this
paragraph
“b”
,
“ending
balance
14
threshold”
means
the
following:
15
(a)
For
applications
for
assistance
for
the
fiscal
year
16
beginning
July
1,
2021,
forty
percent
of
the
actual
gross
17
expenditures
of
the
mental
health
and
disability
services
18
region
for
the
fiscal
year
that
commenced
two
years
prior
to
19
the
fiscal
year
of
application
for
assistance.
20
(b)
For
applications
for
assistance
for
the
fiscal
year
21
beginning
July
1,
2022,
twenty
percent
of
the
actual
gross
22
expenditures
of
the
mental
health
and
disability
services
23
region
for
the
fiscal
year
that
commenced
two
years
prior
to
24
the
fiscal
year
of
application
for
assistance.
25
6.
The
board
shall
review
the
fiscal
year-end
financial
26
records
for
all
mental
health
and
disability
services
regions
27
that
are
granted
risk
pool
assistance.
If
the
board
determines
28
a
mental
health
and
disability
services
region’s
actual
need
29
for
risk
pool
assistance
was
less
than
the
amount
of
risk
pool
30
assistance
granted
to
the
mental
health
and
disability
services
31
region,
the
mental
health
and
disability
services
region
32
shall
refund
the
difference
between
the
amount
of
assistance
33
granted
and
the
actual
need.
The
mental
health
and
disability
34
services
region
shall
submit
the
refund
within
thirty
days
of
35
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receiving
notice
from
the
board.
Refunds
shall
be
credited
1
to
the
risk
pool.
The
mental
health
and
disability
services
2
commission
shall
adopt
rules
pursuant
to
chapter
17A
providing
3
criteria
for
the
purposes
of
this
subsection
and
as
necessary
4
to
implement
the
other
provisions
of
this
section.
5
7.
The
board
shall
determine
application
requirements
to
6
ensure
prudent
use
of
risk
pool
assistance.
The
board
may
7
accept
or
reject
an
application
for
assistance
in
whole
or
in
8
part.
The
decision
of
the
board
is
final.
9
8.
The
total
amount
of
risk
pool
assistance
shall
be
limited
10
to
the
amount
available
in
the
risk
pool
for
a
fiscal
year.
Any
11
unobligated
balance
in
the
risk
pool
at
the
close
of
a
fiscal
12
year
shall
remain
in
the
risk
pool
for
distribution
in
the
13
succeeding
fiscal
year.
14
9.
Risk
pool
assistance
shall
only
be
made
available
to
15
address
one
or
more
of
the
following
circumstances:
16
a.
Continuing
support
for
mandated
services.
17
b.
Avoiding
the
need
for
reduction
or
elimination
of
18
critical
services
when
the
reduction
or
elimination
places
19
consumers’
health
or
safety
at
risk.
20
c.
Avoiding
the
need
for
reduction
or
elimination
of
a
21
mobile
crisis
team
or
other
critical
emergency
services
when
22
the
reduction
or
elimination
places
the
public’s
health
or
23
safety
at
risk.
24
d.
Avoiding
the
need
for
reduction
or
elimination
of
the
25
services
or
other
support
provided
to
entire
populations
of
26
consumers
with
disabilities.
27
e.
Avoiding
the
need
for
reduction
or
elimination
of
28
services
or
other
support
that
maintain
consumers
in
a
29
community
setting
or
that
would
create
a
risk
that
the
30
consumers
would
be
placed
in
more
restrictive,
higher
cost
31
settings.
32
10.
Subject
to
the
amount
available
and
obligated
from
the
33
risk
pool
for
a
fiscal
year,
the
department
of
human
services
34
shall
annually
calculate
the
amount
of
moneys
due
to
eligible
35
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mental
health
and
disability
services
regions
in
accordance
1
with
the
board’s
decisions
and
that
amount
is
appropriated
from
2
the
risk
pool
to
the
department
for
payment
of
the
moneys
due.
3
The
department
shall
authorize
the
issuance
of
warrants
payable
4
to
the
mental
health
and
disability
services
regions
for
the
5
amounts
due
and
the
warrants
shall
be
issued
on
or
before
6
January
1.
7
11.
On
or
before
March
1
and
September
1
of
each
fiscal
8
year,
the
department
of
human
services
shall
provide
the
risk
9
pool
board
with
a
report
of
the
financial
condition
of
each
10
funding
source
administered
by
the
board.
The
report
shall
11
include
but
is
not
limited
to
an
itemization
of
the
funding
12
source’s
balances,
types
and
amount
of
revenues
credited,
and
13
payees
and
payment
amounts
for
the
expenditures
made
from
the
14
funding
source
during
the
reporting
period.
15
12.
If
the
board
has
made
its
decisions
but
has
determined
16
that
there
are
otherwise
qualifying
requests
for
risk
pool
17
assistance
that
are
beyond
the
amount
available
in
the
risk
18
pool
fund
for
a
fiscal
year,
the
board
shall
compile
a
list
of
19
such
requests
and
the
supporting
information
for
the
requests.
20
The
list
and
information
shall
be
submitted
to
the
mental
21
health
and
disability
services
commission,
the
department
of
22
human
services,
and
the
general
assembly.
23
Sec.
26.
ADJUSTMENT
TO
PROPERTY
TAXES
CERTIFIED
UNDER
24
SECTION
331.424A
——
FY
2021-2022.
If
this
division
of
this
25
Act
takes
effect
after
March
31,
2021,
for
each
county
for
26
which
the
amount
of
taxes
certified
for
levy
for
the
purposes
27
of
section
331.424A
for
the
fiscal
year
beginning
July
1,
28
2021,
exceeds
the
product
of
the
population
of
the
county
as
29
determined
under
section
331.424A,
subsection
1,
paragraph
30
“e”,
multiplied
by
twenty-one
dollars
and
fourteen
cents,
31
the
department
of
management
shall
reduce
the
amount
of
such
32
taxes
certified
for
levy
to
an
amount
not
to
exceed
the
33
product
of
the
population
of
the
county
as
determined
under
34
section
331.424A,
subsection
1,
paragraph
“e”,
multiplied
by
35
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twenty-one
dollars
and
fourteen
cents
and
shall
revise
the
rate
1
of
taxation
as
necessary
to
raise
the
reduced
amount.
The
2
department
of
management
shall
report
the
reduction
in
the
3
certified
taxes
and
the
revised
rate
of
taxation
to
the
county
4
auditors
by
June
15,
2021.
5
Sec.
27.
IMPLEMENTATION
OF
RISK
POOL
UNDER
SECTION
426B.6
6
——
EMERGENCY
RULEMAKING.
7
1.
In
order
to
timely
implement
the
provisions
of
this
8
division
of
this
Act
establishing
the
risk
pool
for
mental
9
health
and
disability
services
regions
for
the
fiscal
year
10
beginning
July
1,
2021,
and
the
fiscal
year
beginning
July
11
1,
2022,
the
director
of
human
services
shall,
subject
to
12
the
membership
requirements
of
section
426B.6,
subsection
3,
13
appoint
temporary
members
of
the
risk
pool
board
to
review
14
and
approve
risk
pool
assistance
applications
and
establish
15
alternative
application
deadlines
and
expedited
application
16
review
and
approval
timelines.
17
2.
The
department
of
human
services
may
adopt
18
administrative
rules
under
section
17A.4,
subsection
3,
and
19
section
17A.5,
subsection
2,
paragraph
“b”,
to
implement
20
provisions
of
this
division
of
this
Act
and
the
rules
shall
21
become
effective
immediately
upon
filing
or
on
a
later
22
effective
date
specified
in
the
rules,
unless
the
effective
23
date
of
the
rules
is
delayed
or
the
applicability
of
the
rules
24
is
suspended
by
the
administrative
rules
review
committee.
Any
25
rules
adopted
in
accordance
with
this
section
shall
not
take
26
effect
before
the
rules
are
reviewed
by
the
administrative
27
rules
review
committee.
The
delay
authority
provided
to
the
28
administrative
rules
review
committee
under
section
17A.8,
29
subsection
9,
shall
be
applicable
to
a
delay
imposed
under
this
30
section,
notwithstanding
a
provision
in
that
section
making
it
31
inapplicable
to
section
17A.5,
subsection
2,
paragraph
“b”.
32
Any
rules
adopted
in
accordance
with
the
provisions
of
this
33
section
shall
also
be
published
as
a
notice
of
intended
action
34
as
provided
in
section
17A.4.
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Sec.
28.
EFFECTIVE
DATE.
Except
as
provided
in
this
1
division
of
this
Act,
this
division
of
this
Act,
being
deemed
2
of
immediate
importance,
takes
effect
upon
enactment.
3
Sec.
29.
EFFECTIVE
DATE.
The
following
take
effect
July
1,
4
2022:
5
1.
The
section
of
this
division
of
this
Act
amending
section
6
331.432,
subsection
3.
7
2.
The
section
of
this
division
of
this
Act
amending
section
8
347.7,
subsection
1,
paragraph
“c”.
9
DIVISION
II
10
COMMERCIAL
AND
INDUSTRIAL
PROPERTY
TAX
REPLACEMENT
PAYMENTS
11
Sec.
30.
Section
2.48,
subsection
3,
paragraph
f,
12
subparagraph
(6),
Code
2021,
is
amended
by
striking
the
13
subparagraph.
14
Sec.
31.
Section
331.512,
subsection
15,
Code
2021,
is
15
amended
by
striking
the
subsection.
16
Sec.
32.
Section
331.559,
subsection
27,
Code
2021,
is
17
amended
by
striking
the
subsection.
18
Sec.
33.
Section
441.21A,
subsection
1,
paragraph
a,
Code
19
2021,
is
amended
to
read
as
follows:
20
a.
For
each
fiscal
year
beginning
on
or
after
July
1,
2014,
21
but
before
July
1,
2027,
there
is
appropriated
from
the
general
22
fund
of
the
state
to
the
department
of
revenue
an
amount
23
necessary
for
the
payment
of
all
commercial
and
industrial
24
property
tax
replacement
claims
under
this
section
for
the
25
fiscal
year.
However,
for
a
the
fiscal
year
years
beginning
26
on
or
after
July
1,
2017,
July
1,
2018,
July
1,
2019,
July
1,
27
2020,
and
July
1,
2021,
the
total
amount
of
moneys
appropriated
28
from
the
general
fund
of
the
state
to
the
department
of
revenue
29
for
the
payment
of
commercial
and
industrial
property
tax
30
replacement
claims
in
that
each
fiscal
year
shall
not
exceed
31
the
total
amount
of
money
necessary
to
pay
all
commercial
and
32
industrial
property
tax
replacement
claims
for
the
fiscal
year
33
beginning
July
1,
2016.
34
Sec.
34.
Section
441.21A,
subsections
2
and
3,
Code
2021,
35
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are
amended
to
read
as
follows:
1
2.
a.
Beginning
with
the
For
each
fiscal
year
beginning
2
on
or
after
July
1,
2014,
but
before
July
1,
2022,
each
county
3
treasurer
shall
be
paid
by
the
department
of
revenue
an
4
amount
equal
to
the
amount
of
the
commercial
and
industrial
5
property
tax
replacement
claims
in
the
county,
as
calculated
6
in
subsection
4
.
If
an
amount
appropriated
for
a
the
fiscal
7
year
beginning
on
July
1,
2017,
July
1,
2018,
July
1,
2019,
8
July
1,
2020,
or
July
1,
2021,
is
insufficient
to
pay
all
9
replacement
claims
for
the
fiscal
year
,
the
director
of
revenue
10
shall
prorate
the
payment
of
replacement
claims
to
the
county
11
treasurers
and
shall
notify
the
county
auditors
of
the
pro
rata
12
percentage
on
or
before
September
30.
13
b.
For
each
fiscal
year
beginning
on
or
after
July
1,
2022,
14
but
before
July
1,
2027,
each
taxing
authority
shall
be
paid
by
15
the
department
of
revenue
an
amount
equal
to
the
amount
of
the
16
commercial
and
industrial
property
tax
replacement
claim
for
17
the
taxing
authority,
as
calculated
in
subsection
4A.
18
3.
a.
On
or
before
July
1
of
each
fiscal
year
beginning
on
19
or
after
July
1,
2014,
but
before
July
1,
2022,
the
assessor
20
shall
report
to
the
county
auditor
the
total
actual
value
of
21
all
commercial
property
and
industrial
property
in
the
county
22
that
is
subject
to
assessment
and
taxation
for
the
assessment
23
year
used
to
calculate
the
taxes
due
and
payable
in
that
fiscal
24
year.
25
b.
On
or
before
July
1,
2022,
the
department
of
revenue,
in
26
consultation
with
the
department
of
management,
shall
calculate
27
for
each
taxing
authority
in
this
state
that
is
a
city
or
a
28
county
all
of
the
following:
29
(1)
The
total
assessed
value
as
of
January
1,
2012,
of
30
all
taxable
property
located
in
the
taxing
authority
that
is
31
subject
to
assessment
and
taxation
used
to
calculate
taxes
32
which
are
due
and
payable
in
the
fiscal
year
beginning
July
1,
33
2013,
excluding
property
subject
to
the
statewide
property
tax
34
imposed
under
section
437A.18
or
437B.14.
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(2)
The
total
assessed
value
as
of
January
1,
2019,
of
1
all
taxable
property
located
in
the
taxing
authority
that
is
2
subject
to
assessment
and
taxation
used
to
calculate
taxes
3
which
are
due
and
payable
in
the
fiscal
year
beginning
July
1,
4
2020,
excluding
property
subject
to
the
statewide
property
tax
5
imposed
under
section
437A.18
or
437B.14.
6
Sec.
35.
Section
441.21A,
subsection
4,
unnumbered
7
paragraph
1,
Code
2021,
is
amended
to
read
as
follows:
8
On
or
before
a
date
established
by
rule
of
the
department
9
of
revenue
of
each
fiscal
year
beginning
on
or
after
July
10
1,
2014,
but
before
July
1,
2022,
the
county
auditor
shall
11
prepare
a
statement,
based
upon
the
report
received
pursuant
to
12
subsection
3
,
paragraph
“a”
,
listing
for
each
taxing
district
13
in
the
county:
14
Sec.
36.
Section
441.21A,
Code
2021,
is
amended
by
adding
15
the
following
new
subsection:
16
NEW
SUBSECTION
.
4A.
a.
As
used
in
this
subsection,
unless
17
the
context
clearly
requires
otherwise:
18
(1)
“Qualified
taxing
authority”
means
any
of
the
following:
19
(a)
A
taxing
authority
that
is
not
a
city
or
a
county.
20
(b)
A
taxing
authority
that
is
a
city
or
county
for
which
21
the
amount
determined
under
subsection
3,
paragraph
“b”
,
22
subparagraph
(2),
is
less
than
one
hundred
thirty-one
and
23
fourteen
hundredths
percent
of
the
amount
determined
under
24
subsection
3,
paragraph
“b”
,
subparagraph
(1).
25
(2)
“Taxing
authority”
means
a
city,
county,
community
26
college,
or
other
governmental
entity
or
political
subdivision
27
in
this
state
authorized
to
certify
a
levy
on
property
located
28
within
such
authority,
but
does
not
include
a
school
district.
29
b.
For
fiscal
years
beginning
on
or
after
July
1,
2022,
30
but
before
July
1,
2027,
the
amount
of
each
taxing
authority’s
31
replacement
claim
is
as
follows:
32
(1)
If
the
taxing
authority
is
a
qualified
taxing
authority:
33
(a)
For
the
fiscal
year
beginning
July
1,
2022,
five-sixths
34
of
the
amount
received
by
the
taxing
authority
under
this
35
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section
for
the
fiscal
year
beginning
July
1,
2021.
1
(b)
For
the
fiscal
year
beginning
July
1,
2023,
four-sixths
2
of
the
amount
received
by
the
taxing
authority
under
this
3
section
for
the
fiscal
year
beginning
July
1,
2021.
4
(c)
For
the
fiscal
year
beginning
July
1,
2024,
three-sixths
5
of
the
amount
received
by
the
taxing
authority
under
this
6
section
for
the
fiscal
year
beginning
July
1,
2021.
7
(d)
For
the
fiscal
year
beginning
July
1,
2025,
two-sixths
8
of
the
amount
received
by
the
taxing
authority
under
this
9
section
for
the
fiscal
year
beginning
July
1,
2021.
10
(e)
For
the
fiscal
year
beginning
July
1,
2026,
one-sixth
of
11
the
amount
received
by
the
taxing
authority
under
this
section
12
for
the
fiscal
year
beginning
July
1,
2021.
13
(2)
If
the
taxing
authority
is
not
a
qualified
taxing
14
authority:
15
(a)
For
the
fiscal
year
beginning
July
1,
2022,
16
three-fourths
of
the
amount
received
by
the
taxing
authority
17
under
this
section
for
the
fiscal
year
beginning
July
1,
2021.
18
(b)
For
the
fiscal
year
beginning
July
1,
2023,
two-fourths
19
of
the
amount
received
by
the
taxing
authority
under
this
20
section
for
the
fiscal
year
beginning
July
1,
2021.
21
(c)
For
the
fiscal
year
beginning
July
1,
2024,
one-fourth
22
of
the
amount
received
by
the
taxing
authority
under
this
23
section
for
the
fiscal
year
beginning
July
1,
2021.
24
(d)
For
the
fiscal
year
beginning
July
1,
2025,
and
each
25
succeeding
fiscal
year
beginning
before
July
1,
2027,
zero.
26
(3)
The
department
of
revenue
shall
consult
with
the
27
department
of
management
to
calculate
the
amount
received
by
28
each
taxing
authority
in
this
state
as
the
result
of
commercial
29
and
industrial
property
tax
replacement
claims
paid
for
the
30
fiscal
year
beginning
July
1,
2021.
31
Sec.
37.
Section
441.21A,
subsection
5,
Code
2021,
is
32
amended
to
read
as
follows:
33
5.
For
purposes
of
computing
replacement
amounts
under
34
this
section
for
fiscal
years
beginning
on
or
after
July
1,
35
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2014,
but
before
July
1,
2022
,
that
portion
of
an
urban
renewal
1
area
defined
as
the
sum
of
the
assessed
valuations
defined
in
2
section
403.19,
subsections
1
and
2
,
shall
be
considered
a
3
taxing
district.
4
Sec.
38.
Section
441.21A,
subsection
6,
paragraph
a,
Code
5
2021,
is
amended
to
read
as
follows:
6
a.
The
For
fiscal
years
beginning
on
or
after
July
1,
2014,
7
but
before
July
1,
2022,
the
county
auditor
shall
certify
8
and
forward
one
copy
of
the
statement
to
the
department
of
9
revenue
not
later
than
a
date
of
each
year
established
by
the
10
department
of
revenue
by
rule.
11
Sec.
39.
Section
441.21A,
subsection
6,
Code
2021,
is
12
amended
by
adding
the
following
new
paragraph:
13
NEW
PARAGRAPH
.
f.
This
subsection
shall
apply
to
the
14
apportionment
of
replacement
claim
amounts
for
fiscal
years
15
beginning
on
or
after
July
1,
2014,
but
before
July
1,
2022.
16
Sec.
40.
Section
441.21A,
Code
2021,
is
amended
by
adding
17
the
following
new
subsections:
18
NEW
SUBSECTION
.
7.
a.
For
fiscal
years
beginning
on
19
or
after
July
1,
2022,
but
before
July
1,
2027,
each
taxing
20
authority’s
replacement
claim
calculated
under
subsection
4A
21
shall
be
paid
to
the
taxing
authority
in
equal
installments
in
22
September
and
March
of
each
year.
23
b.
The
taxing
authority’s
replacement
claim
shall
be
24
apportioned
and
credited
by
the
governing
body
of
the
taxing
25
authority
among
the
taxing
authority’s
tax
levies
in
the
same
26
proportion
that
each
property
tax
levy
bears
to
the
total
of
27
all
property
tax
levies
imposed
by
the
taxing
authority
for
the
28
fiscal
year
for
which
the
payment
is
received.
29
c.
Of
the
amounts
allocated
and
credited
to
each
property
30
tax
levy
that
is
subject
to
division
under
section
403.19,
31
the
total
amount
paid
into
the
fund
for
the
taxing
authority
32
as
taxes
by
or
for
the
taxing
authority
into
which
all
other
33
property
taxes
are
paid
and
the
special
fund
of
the
applicable
34
municipality
under
section
403.19,
subsection
2,
shall
be
an
35
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amount
of
the
replacement
claim
that
is
proportionate
to
the
1
amount
of
the
total
sum
of
the
assessed
value
of
the
taxable
2
commercial
and
industrial
property
in
the
urban
renewal
area
as
3
a
share
of
total
assessed
value
of
all
taxable
property
in
the
4
taxing
authority
and
shall
be
apportioned
as
follows:
5
(1)
To
the
fund
for
the
taxing
authority
as
taxes
by
or
for
6
the
taxing
authority
into
which
all
other
property
taxes
are
7
paid,
an
amount
proportionate
to
the
amount
of
actual
value
of
8
the
commercial
and
industrial
property
in
the
urban
renewal
9
area
as
determined
in
section
403.19,
subsection
1,
that
was
10
subtracted
pursuant
to
section
403.20,
as
it
bears
to
the
11
total
amount
of
actual
value
of
the
commercial
and
industrial
12
property
in
the
urban
renewal
area
that
was
subtracted
pursuant
13
to
section
403.20
for
the
assessment
year
for
property
taxes
14
due
and
payable
in
the
fiscal
year
for
which
the
replacement
15
claim
is
computed.
16
(2)
(a)
To
the
special
fund
of
the
applicable
municipality
17
under
section
403.19,
subsection
2,
the
remaining
amount,
if
18
any.
19
(b)
The
amount
allocated
under
subparagraph
division
(a)
20
shall
not
exceed
the
amount
equal
to
the
amount
certified
to
21
the
county
auditor
under
section
403.19
for
the
fiscal
year
in
22
which
the
claim
is
paid,
after
deduction
of
the
amount
of
other
23
revenues
committed
for
payment
on
that
amount
for
the
fiscal
24
year.
The
amount
not
allocated
as
a
result
of
the
operation
of
25
this
subparagraph
division
(b)
shall
be
allocated
to
and
paid
26
into
the
fund
for
the
taxing
authority
as
taxes
by
or
for
the
27
taxing
authority
in
the
manner
provided
in
subparagraph
(1).
28
NEW
SUBSECTION
.
8.
This
section
is
repealed
July
1,
2027.
29
Sec.
41.
EFFECTIVE
DATE.
The
following
take
effect
July
1,
30
2027:
31
1.
The
section
of
this
division
of
this
Act
amending
section
32
331.512.
33
2.
The
section
of
this
division
of
this
Act
amending
section
34
331.559.
35
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DIVISION
III
1
SCHOOL
FOUNDATION
PERCENTAGE
2
Sec.
42.
Section
257.1,
subsection
2,
paragraph
b,
Code
3
2021,
is
amended
to
read
as
follows:
4
b.
For
the
budget
year
commencing
July
1,
1999,
and
for
5
each
succeeding
budget
year
beginning
before
July
1,
2022,
6
the
regular
program
foundation
base
per
pupil
is
eighty-seven
7
and
five-tenths
percent
of
the
regular
program
state
cost
per
8
pupil.
For
the
budget
year
commencing
July
1,
2022,
and
for
9
each
succeeding
budget
year,
the
regular
program
foundation
10
base
per
pupil
is
eighty-eight
and
four-tenths
percent
of
the
11
regular
program
state
cost
per
pupil.
For
the
budget
year
12
commencing
July
1,
1991,
and
for
each
succeeding
budget
year
13
the
special
education
support
services
foundation
base
is
14
seventy-nine
percent
of
the
special
education
support
services
15
state
cost
per
pupil.
The
combined
foundation
base
is
the
sum
16
of
the
regular
program
foundation
base,
the
special
education
17
support
services
foundation
base,
the
total
teacher
salary
18
supplement
district
cost,
the
total
professional
development
19
supplement
district
cost,
the
total
early
intervention
20
supplement
district
cost,
the
total
teacher
leadership
21
supplement
district
cost,
the
total
area
education
agency
22
teacher
salary
supplement
district
cost,
and
the
total
area
23
education
agency
professional
development
supplement
district
24
cost.
25
Sec.
43.
Section
257.3,
subsection
1,
paragraph
d,
Code
26
2021,
is
amended
by
striking
the
paragraph.
27
Sec.
44.
EFFECTIVE
DATE.
The
section
of
this
division
of
28
this
Act
amending
section
257.3,
subsection
1,
paragraph
“d”,
29
takes
effect
July
1,
2022.
30
DIVISION
IV
31
PUBLIC
EDUCATION
AND
RECREATION
TAX
LEVY
32
Sec.
45.
Section
276.10,
subsection
1,
Code
2021,
is
amended
33
to
read
as
follows:
34
1.
The
board
of
directors
of
a
local
school
district
35
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may
establish
a
community
education
program
for
schools
in
1
the
district
and
provide
for
the
general
supervision
of
the
2
program.
Financial
support
for
the
program
shall
may
be
3
provided
from
funds
raised
pursuant
to
chapter
300
received
by
4
the
school
district
under
chapter
423F
and
from
any
private
5
funds
and
any
federal
funds
made
available
for
the
purpose
of
6
implementing
this
chapter
.
The
program
which
recognizes
that
7
the
schools
belong
to
the
people
and
which
shall
be
centered
8
in
the
schools
may
include
but
shall
not
be
limited
to
the
use
9
of
the
school
facilities
day
and
night,
year
round
including
10
weekends
and
regular
school
vacation
periods
for
educational,
11
recreational,
cultural,
and
other
community
services
and
12
programs
for
all
age,
ethnic,
and
socioeconomic
groups
residing
13
in
the
community.
14
Sec.
46.
Section
278.1,
subsection
1,
paragraph
e,
Code
15
2021,
is
amended
to
read
as
follows:
16
e.
Direct
the
transfer
of
any
surplus
in
the
debt
service
17
fund,
physical
plant
and
equipment
levy
fund
,
or
other
capital
18
project
funds
,
or
public
education
and
recreation
levy
fund
to
19
the
general
fund.
20
Sec.
47.
Section
298A.6,
Code
2021,
is
amended
to
read
as
21
follows:
22
298A.6
Public
education
and
recreation
levy
fund.
23
The
public
education
and
recreation
levy
fund
is
a
special
24
revenue
fund.
A
public
education
and
recreation
levy
fund
25
must
be
established
in
any
school
corporation
which
levies
26
levied
the
tax
authorized
under
section
300.2
,
Code
2021,
or
27
which
receives
received
revenue
from
a
chapter
28E
agreement
28
authorized
under
section
300.1
,
Code
2021
.
Moneys
available
in
29
the
fund
at
the
conclusion
of
the
fiscal
year
beginning
July
1,
30
2021,
and
ending
June
30,
2022,
shall
be
expended
by
the
school
31
corporation
for
the
purposes
authorized
under
chapter
300,
Code
32
2021.
33
Sec.
48.
Section
423F.3,
subsection
1,
paragraph
c,
Code
34
2021,
is
amended
by
striking
the
paragraph.
35
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Sec.
49.
Section
423F.5,
subsection
1,
Code
2021,
is
amended
1
to
read
as
follows:
2
1.
A
school
district
shall
include
as
part
of
its
financial
3
audit
for
the
budget
year
beginning
July
1,
2007,
and
for
4
each
subsequent
budget
year
the
amount
received
during
the
5
year
pursuant
to
chapter
423E
or
this
chapter
,
as
applicable.
6
In
addition,
the
financial
audit
shall
include
the
amount
7
of
bond
levies
,
and
physical
plant
and
equipment
levy
,
and
8
public
educational
and
recreational
levy
reduced
as
a
result
9
of
the
moneys
received
under
chapter
423E
or
this
chapter
,
10
as
applicable.
The
amount
of
the
reductions
shall
be
stated
11
in
terms
of
dollars
and
cents
per
one
thousand
dollars
of
12
valuation
and
in
total
amount
of
property
tax
dollars.
Also
13
included
shall
be
an
accounting
of
the
amount
of
moneys
14
received
which
were
spent
for
infrastructure
purposes
pursuant
15
to
chapter
423E
or
this
chapter
,
as
applicable.
16
Sec.
50.
REPEAL.
Sections
276.11
and
276.12,
Code
2021,
17
are
repealed.
18
Sec.
51.
REPEAL.
Chapter
300,
Code
2021,
is
repealed.
19
Sec.
52.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
20
effect
July
1,
2022.
21
Sec.
53.
APPLICABILITY.
This
division
of
this
Act
applies
22
to
fiscal
years
beginning
on
or
after
July
1,
2022.
23
DIVISION
V
24
ELDERLY
PROPERTY
TAX
CREDIT
25
Sec.
54.
Section
25B.7,
subsection
2,
paragraph
b,
Code
26
2021,
is
amended
to
read
as
follows:
27
b.
Low-income
property
tax
credit
and
elderly
and
disabled
28
property
tax
credit
pursuant
to
sections
425.16
through
425.40
,
29
subject
to
the
limitation
of
425.39,
subsection
2
.
30
Sec.
55.
Section
425.1,
subsection
1,
paragraph
a,
Code
31
2021,
is
amended
to
read
as
follows:
32
a.
A
homestead
credit
fund
is
created.
There
is
33
appropriated
annually
from
the
general
fund
of
the
state
to
34
the
department
of
revenue
to
be
credited
to
the
homestead
35
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_____
credit
fund,
an
amount
sufficient
to
implement
this
chapter
1
subchapter
.
2
Sec.
56.
Section
425.17,
subsection
2,
Code
2021,
is
amended
3
to
read
as
follows:
4
2.
a.
“Claimant”
means
either
any
of
the
following:
5
(1)
A
person
filing
a
claim
for
credit
or
reimbursement
6
under
this
subchapter
who
has
attained
the
age
of
sixty-five
7
years
but
who
has
not
attained
the
age
of
seventy
years
on
8
or
before
December
31
of
the
base
year
or
,
a
person
filing
a
9
claim
for
credit
or
reimbursement
under
this
subchapter
who
10
is
totally
disabled
and
was
totally
disabled
on
or
before
11
December
31
of
the
base
year
,
or
a
person
filing
a
claim
for
12
reimbursement
under
this
subchapter
who
has
attained
the
age
of
13
sixty-five
years
on
or
before
December
31
of
the
base
year
and
14
who
is
domiciled
in
this
state
at
the
time
the
claim
is
filed
or
15
at
the
time
of
the
person’s
death
in
the
case
of
a
claim
filed
16
by
the
executor
or
administrator
of
the
claimant’s
estate.
17
(2)
A
person
filing
a
claim
for
credit
or
reimbursement
18
under
this
subchapter
who
has
attained
the
age
of
twenty-three
19
years
on
or
before
December
31
of
the
base
year
or
was
a
head
20
of
household
on
December
31
of
the
base
year,
as
defined
in
21
the
Internal
Revenue
Code,
but
has
not
attained
the
age
or
22
disability
status
described
in
this
paragraph
“a”
,
subparagraph
23
(1)
or
the
age
status
and
eligibility
criteria
of
subparagraph
24
(3)
,
and
is
domiciled
in
this
state
at
the
time
the
claim
is
25
filed
or
at
the
time
of
the
person’s
death
in
the
case
of
a
26
claim
filed
by
the
executor
or
administrator
of
the
claimant’s
27
estate,
and
was
not
claimed
as
a
dependent
on
any
other
28
person’s
tax
return
for
the
base
year.
29
(3)
A
person
filing
a
claim
for
credit
under
this
subchapter
30
who
has
attained
the
age
of
seventy
years
on
or
before
December
31
31
of
the
base
year,
who
has
a
household
income
of
less
than
32
two
hundred
fifty
percent
of
the
federal
poverty
level,
as
33
defined
by
the
most
recently
revised
poverty
income
guidelines
34
published
by
the
United
States
department
of
health
and
human
35
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services,
and
is
domiciled
in
this
state
at
the
time
the
claim
1
is
filed
or
at
the
time
of
the
person’s
death
in
the
case
of
a
2
claim
filed
by
the
executor
or
administrator
of
the
claimant’s
3
estate.
4
b.
“Claimant”
under
paragraph
“a”
,
subparagraph
(1)
or
(2),
5
includes
a
vendee
in
possession
under
a
contract
for
deed
and
6
may
include
one
or
more
joint
tenants
or
tenants
in
common.
7
In
the
case
of
a
claim
for
rent
constituting
property
taxes
8
paid,
the
claimant
shall
have
rented
the
property
during
any
9
part
of
the
base
year.
In
the
case
of
a
claim
for
property
10
taxes
due,
the
claimant
shall
have
occupied
the
property
during
11
any
part
of
the
fiscal
year
beginning
July
1
of
the
base
year.
12
If
a
homestead
is
occupied
by
two
or
more
persons,
and
more
13
than
one
person
is
able
to
qualify
as
a
claimant,
the
persons
14
may
each
file
a
claim
based
upon
each
person’s
income
and
rent
15
constituting
property
taxes
paid
or
property
taxes
due.
16
Sec.
57.
Section
425.23,
subsection
1,
paragraph
a,
17
unnumbered
paragraph
1,
Code
2021,
is
amended
to
read
as
18
follows:
19
The
tentative
credit
or
reimbursement
for
a
claimant
20
described
in
section
425.17,
subsection
2
,
paragraph
“a”
,
21
subparagraphs
subparagraph
(1)
and
(2),
if
no
appropriation
is
22
made
to
the
fund
created
in
section
425.40
shall
be
determined
23
in
accordance
with
the
following
schedule:
24
Sec.
58.
Section
425.23,
subsection
1,
Code
2021,
is
amended
25
by
adding
the
following
new
paragraph:
26
NEW
PARAGRAPH
.
c.
The
tentative
credit
for
a
claimant
27
described
in
section
425.17,
subsection
2,
paragraph
“a”
,
28
subparagraph
(3),
shall
be
the
greater
of
the
following:
29
(1)
The
amount
of
the
credit
under
the
schedule
specified
30
in
paragraph
“a”
of
this
subsection
as
if
the
claimant
was
a
31
claimant
as
defined
in
section
425.17,
subsection
2,
paragraph
32
“a”
,
subparagraph
(1),
filing
for
a
credit
under
paragraph
“a”
33
of
this
subsection.
34
(2)
The
difference
between
the
actual
amount
of
property
35
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taxes
due
on
the
homestead
during
the
fiscal
year
next
1
following
the
base
year
minus
the
actual
amount
of
property
2
taxes
due
on
the
homestead
during
the
first
fiscal
year
for
3
which
the
claimant
filed
a
claim
for
a
credit
calculated
under
4
this
paragraph
“c”
and
for
which
the
property
taxes
due
on
the
5
homestead
were
calculated
on
an
assessed
valuation
that
was
6
not
a
partial
assessment
and
if
the
claimant
has
filed
for
the
7
credit
calculated
under
this
paragraph
“c”
for
each
of
the
8
subsequent
fiscal
years
after
the
first
credit
claimed.
9
Sec.
59.
Section
425.23,
subsection
4,
paragraph
a,
Code
10
2021,
is
amended
to
read
as
follows:
11
a.
For
the
base
year
beginning
in
the
1999
calendar
year
12
and
for
each
subsequent
base
year,
the
dollar
amounts
set
13
forth
in
subsections
subsection
1
,
paragraphs
“a”
and
“b”
,
and
14
subsection
3
shall
be
multiplied
by
the
cumulative
adjustment
15
factor
for
that
base
year.
“Cumulative
adjustment
factor”
means
16
the
product
of
the
annual
adjustment
factor
for
the
1998
base
17
year
and
all
annual
adjustment
factors
for
subsequent
base
18
years.
The
cumulative
adjustment
factor
applies
to
the
base
19
year
beginning
in
the
calendar
year
for
which
the
latest
annual
20
adjustment
factor
has
been
determined.
21
Sec.
60.
Section
425.24,
Code
2021,
is
amended
to
read
as
22
follows:
23
425.24
Maximum
property
tax
for
purpose
of
credit
or
24
reimbursement.
25
In
For
claimants
under
section
425.17,
subsection
2,
26
paragraph
“a”
,
subparagraphs
(1)
and
(2),
and
for
the
27
calculation
under
section
425.23,
subsection
1,
paragraph
“c”
,
28
subparagraph
(1),
in
any
case
in
which
property
taxes
due
or
29
rent
constituting
property
taxes
paid
for
any
household
exceeds
30
one
thousand
dollars,
the
amount
of
property
taxes
due
or
rent
31
constituting
property
taxes
paid
shall
be
deemed
to
have
been
32
one
thousand
dollars
for
purposes
of
this
subchapter
.
33
Sec.
61.
Section
425.39,
Code
2021,
is
amended
to
read
as
34
follows:
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425.39
Fund
created
——
appropriation
——
priority.
1
1.
The
elderly
and
disabled
property
tax
credit
and
2
reimbursement
fund
is
created.
There
is
appropriated
annually
3
from
the
general
fund
of
the
state
to
the
department
of
revenue
4
to
be
credited
to
the
elderly
and
disabled
property
tax
credit
5
and
reimbursement
fund,
from
funds
not
otherwise
appropriated,
6
an
amount
sufficient
to
implement
this
subchapter
for
claimants
7
described
in
section
425.17,
subsection
2
,
paragraph
“a”
,
8
subparagraph
subparagraphs
(1)
and
(3),
subject
to
subsection
9
2
.
10
2.
Regardless
of
the
amount
of
the
credit
determined
under
11
section
425.23,
subsection
1,
paragraph
“c”
,
the
amount
paid
by
12
the
director
of
revenue
to
each
county
treasurer
for
credits
13
for
claimants
described
under
section
425.17,
subsection
2,
14
paragraph
“a”
,
subparagraph
(3),
shall
not
exceed
the
amount
15
calculated
for
the
claimant
under
section
425.23,
subsection
1,
16
paragraph
“c”
,
subparagraph
(1),
and
section
25B.7,
subsection
17
1,
shall
not
apply
to
the
amount
of
the
credit
in
excess
of
the
18
amount
paid
by
the
director
of
revenue.
19
Sec.
62.
APPLICABILITY.
This
division
of
this
Act
applies
20
to
claims
under
chapter
425,
subchapter
II,
filed
on
or
after
21
January
1,
2022.
22
DIVISION
VI
23
FUTURE
TAX
CHANGES
24
Sec.
63.
2018
Iowa
Acts,
chapter
1161,
section
133,
is
25
amended
by
striking
the
section
and
inserting
in
lieu
thereof
26
the
following:
27
SEC.
133.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
28
effect
January
1,
2023.
29
DIVISION
VII
30
CHARITABLE
CONSERVATION
CONTRIBUTION
TAX
CREDIT
31
Sec.
64.
Section
2.48,
subsection
3,
paragraph
e,
32
subparagraph
(6),
Code
2021,
is
amended
by
striking
the
33
subparagraph.
34
Sec.
65.
Section
422.33,
subsection
25,
Code
2021,
is
35
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_____
amended
by
striking
the
subsection.
1
Sec.
66.
REPEAL.
Section
422.11W,
Code
2021,
is
repealed.
2
Sec.
67.
APPLICABILITY.
This
division
of
this
Act
applies
3
to
conveyances
made
on
or
after
July
1,
2021.
4
DIVISION
VIII
5
FOREST
RESERVATIONS
6
Sec.
68.
Section
427C.1,
Code
2021,
is
amended
to
read
as
7
follows:
8
427C.1
Tax
exemption.
9
1.
Any
person
who
establishes
a
forest
or
The
owner
of
a
10
fruit-tree
reservation
as
provided
in
this
chapter
shall
be
11
entitled
to
the
tax
exemption
provided
by
law.
12
2.
The
owner
of
a
forest
reservation
as
provided
in
this
13
chapter
shall
be
entitled
to
the
tax
exemption
provided
by
law
14
for
assessment
years
beginning
on
or
after
January
1,
2022,
if
15
the
owner
is
actively
engaged
in
the
operation
or
management
of
16
the
forest
reservation.
17
3.
a.
The
department
of
natural
resources
shall
adopt
18
rules
pursuant
to
chapter
17A
to
interpret
the
requirement
19
of
subsection
2
that
the
owner
of
a
forest
reservation
be
20
actively
engaged
in
the
operation
or
management
of
the
forest
21
reservation.
22
b.
For
each
forest
reservation
exemption
for
which
the
23
application
was
filed
on
or
before
the
effective
date
of
24
this
division
of
this
Act,
in
order
to
receive
or
continue
25
receiving
the
exemption
under
this
chapter,
the
owner
must
26
file
by
February
1,
2022,
with
the
department
of
natural
27
resources,
evidence
that
the
owner
meets
the
requirement
for
28
active
engagement
in
the
operation
or
management
of
the
forest
29
reservation.
30
c.
The
department
of
natural
resources
shall
prepare
and
31
make
available
a
form
to
assist
owners
in
complying
with
the
32
requirement
of
paragraph
“b”
.
33
Sec.
69.
Section
427C.3,
Code
2021,
is
amended
to
read
as
34
follows:
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_____
427C.3
Forest
reservation
——
duration
of
exemption
.
1
1.
A
forest
reservation
shall
contain
not
less
than
two
2
hundred
growing
forest
trees
on
each
acre.
If
the
area
3
selected
is
a
forest
containing
the
required
number
of
growing
4
forest
trees,
it
shall
be
accepted
as
a
forest
reservation
5
under
this
chapter
for
a
period
of
five
years
provided
6
application
is
made
or
on
file
on
or
before
February
1
of
the
7
exemption
year.
If
any
buildings
are
standing
on
an
area
8
selected
as
a
forest
reservation
under
this
section
or
a
9
fruit-tree
reservation
under
section
427C.7
,
one
acre
of
that
10
area
shall
be
excluded
from
the
tax
exemption.
However,
the
11
exclusion
of
that
acre
shall
not
affect
the
area’s
meeting
the
12
acreage
requirement
of
section
427C.2
.
13
2.
For
forest
reservation
exemption
applications
filed
on
14
or
before
February
1,
2022,
the
five-year
period
provided
under
15
subsection
1
begins
with
the
assessment
year
beginning
January
16
1,
2022,
unless,
if
applicable,
the
owner
fails
to
satisfy
the
17
requirement
of
section
427C.1,
subsection
3.
18
Sec.
70.
Section
427C.7,
Code
2021,
is
amended
to
read
as
19
follows:
20
427C.7
Fruit-tree
reservation
——
duration
of
exemption.
21
A
fruit-tree
reservation
shall
contain
on
each
acre,
22
at
least
forty
apple
trees,
or
seventy
other
fruit
trees,
23
growing
under
proper
care
and
annually
pruned
and
sprayed.
24
A
reservation
may
be
claimed
as
a
fruit-tree
reservation,
25
under
this
chapter
,
for
a
period
of
eight
years
after
planting
26
provided
application
is
made
or
on
file
on
or
before
February
27
1
of
the
exemption
year.
If
any
buildings
are
standing
on
an
28
area
selected
as
a
fruit-tree
reservation
under
this
section,
29
one
acre
of
that
area
shall
be
excluded
from
the
tax
exemption.
30
However,
the
exclusion
of
that
acre
shall
not
affect
the
area’s
31
meeting
the
acreage
requirement
of
section
427C.2.
32
Sec.
71.
Section
427C.12,
Code
2021,
is
amended
to
read
as
33
follows:
34
427C.12
Application
——
inspection
——
continuation
of
35
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exemption
——
recapture
of
tax.
1
1.
It
shall
be
the
duty
of
the
assessor
to
secure
the
facts
2
relative
to
fruit-tree
and
forest
reservations
by
taking
the
3
sworn
statement,
or
affirmation,
of
the
owner
or
owners
making
4
application
under
this
chapter
;
and
to
make
special
report
to
5
the
county
auditor
of
all
reservations
made
in
the
county
under
6
the
provisions
of
this
chapter
.
7
2.
a.
The
board
of
supervisors
shall
designate
the
county
8
conservation
board
or
the
assessor
who
shall
inspect
the
area
9
for
which
an
application
is
filed
for
a
fruit-tree
or
forest
10
reservation
tax
exemption
before
the
application
is
accepted.
11
b.
The
department
of
natural
resources
shall
review
the
12
application
for
a
forest
reservation
tax
exemption
before
the
13
application
is
accepted.
14
c.
Use
of
The
department
of
natural
resources
shall
use
15
aerial
photographs
may
be
substituted
for
on-site
inspection
16
when
appropriate
provided
by
the
county
assessor
to
determine
17
if
the
application
meets
the
criteria
established
by
the
18
natural
resource
commission
to
be
a
forest
reservation
.
19
3.
The
application
can
only
be
accepted
if
it
meets
the
20
criteria
established
by
the
natural
resource
commission
to
21
be
a
fruit-tree
or
forest
reservation
department
of
natural
22
resources
may
conduct
an
on-site
review
if
necessary
to
verify
23
the
eligibility
of
a
forest
reservation
application
.
24
4.
Once
the
application
has
been
accepted,
the
area
shall
25
continue
to
receive
the
tax
exemption
during
each
year
of
the
26
applicable
exemption
period
under
section
427C.3
or
427C.7
27
in
which
the
area
is
maintained
as
a
fruit-tree
or
forest
or
28
fruit-tree
reservation
without
the
owner
having
to
refile.
If
29
the
property
is
sold
or
transferred,
the
seller
shall
notify
30
the
buyer
that
all,
or
part
of,
the
property
is
in
fruit-tree
31
or
forest
reservation
and
subject
to
the
recapture
tax
32
provisions
of
this
section
.
The
tax
exemption
shall
continue
33
to
be
granted
for
the
remainder
of
the
eight-year
exemption
34
period
for
fruit-tree
reservation
and
for
the
following
years
35
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for
forest
reservation
under
section
427C.3
or
427C.7,
or
until
1
the
property
no
longer
qualifies
as
a
fruit-tree
or
forest
or
2
fruit-tree
reservation.
3
5.
a.
The
An
area
that
is
a
fruit-tree
reservation
may
4
be
inspected
each
year
by
the
county
conservation
board
or
5
the
assessor
to
determine
if
the
area
is
maintained
as
a
6
fruit-tree
or
forest
reservation.
An
area
that
is
a
forest
7
reservation
may
be
inspected
each
year
by
the
department
of
8
natural
resources
to
determine
if
the
area
is
maintained
as
9
forest
reservation.
If
the
area
is
not
maintained
or
is
used
10
for
economic
gain
other
than
as
a
fruit-tree
reservation
during
11
any
year
of
the
eight-year
exemption
period
and
any
year
of
12
the
following
five
years
following
the
exemption
period,
if
13
the
property
is
no
longer
receiving
an
exemption
under
this
14
chapter,
or
as
a
forest
reservation
during
any
year
for
which
15
of
the
exemption
is
granted
period
and
any
of
the
five
years
16
following
those
exemption
years
the
exemption
period,
if
17
the
property
is
no
longer
receiving
an
exemption
under
this
18
chapter
,
the
assessor
shall
assess
the
property
for
taxation
19
at
its
fair
market
value
as
of
January
1
of
that
year
and
20
in
addition
the
area
shall
be
subject
to
a
recapture
tax.
21
However,
the
area
shall
not
be
subject
to
the
recapture
tax
if
22
the
owner,
including
one
possessing
under
a
contract
of
sale,
23
and
the
owner’s
direct
antecedents
or
descendants
have
owned
24
the
area
for
more
than
ten
years.
25
b.
The
recapture
tax
shall
be
computed
by
multiplying
the
26
consolidated
levy
for
each
of
those
years,
if
any,
of
the
five
27
preceding
years
for
which
the
area
received
the
exemption
for
28
fruit-tree
or
forest
reservation
times
the
assessed
value
of
29
the
area
that
would
have
been
taxed
but
for
the
tax
exemption.
30
This
tax
shall
be
entered
against
the
property
on
the
tax
list
31
for
the
current
year
and
shall
constitute
a
lien
against
the
32
property
in
the
same
manner
as
a
lien
for
property
taxes.
The
33
tax
when
collected
shall
be
apportioned
in
the
manner
provided
34
for
the
apportionment
of
the
property
taxes
for
the
applicable
35
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tax
year.
1
6.
Upon
expiration
of
the
applicable
exemption
period,
the
2
owner
of
a
forest
or
fruit-tree
reservation
may
reapply
for
3
an
exemption
under
this
chapter
if
the
property
meets
all
the
4
criteria
for
the
exemption
under
this
chapter.
5
Sec.
72.
Section
441.22,
Code
2021,
is
amended
to
read
as
6
follows:
7
441.22
Forest
and
fruit-tree
reservations.
8
Forest
and
fruit-tree
reservations
fulfilling
the
conditions
9
of
sections
427C.1
to
427C.13
chapter
427C
shall
be
exempt
from
10
taxation
to
the
extent
authorized
in
that
chapter
.
In
all
11
other
cases
where
trees
are
planted
upon
any
tract
of
land,
12
without
regard
to
area,
for
forest,
fruit,
shade,
or
ornamental
13
purposes,
or
for
windbreaks,
the
assessor
shall
not
increase
14
the
valuation
of
the
property
because
of
such
improvements.
15
Sec.
73.
SAVINGS
PROVISION.
This
division
of
this
Act,
16
pursuant
to
section
4.13,
does
not
affect
the
operation
of,
17
or
prohibit
the
application
of,
prior
provisions
of
chapter
18
427C
or
section
441.22,
or
rules
adopted
under
chapter
17A
to
19
administer
prior
provisions
of
chapter
427C
or
section
441.22,
20
for
assessment
years
beginning
before
January
1,
2022,
and
for
21
duties,
powers,
protests,
appeals,
proceedings,
actions,
or
22
remedies
attributable
to
an
assessment
year
beginning
before
23
January
1,
2022.
24
Sec.
74.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
25
deemed
of
immediate
importance,
takes
effect
upon
enactment.
26
Sec.
75.
APPLICABILITY.
This
division
of
this
Act
applies
27
to
assessment
years
beginning
on
or
after
January
1,
2022.
28
Sec.
76.
RETROACTIVE
APPLICABILITY.
The
following
applies
29
retroactively
to
February
2,
2021,
for
forest
reservation
30
property
tax
exemption
applications
filed
on
or
after
that
31
date:
32
The
provision
of
this
division
of
this
Act
enacting
section
33
427C.12,
subsections
2
and
3.
34
EXPLANATION
35
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The
inclusion
of
this
explanation
does
not
constitute
agreement
with
1
the
explanation’s
substance
by
the
members
of
the
general
assembly.
2
This
bill
relates
to
state
and
local
government
financing,
3
programs,
and
operations
by
modifying
provisions
relating
to
4
school
district
funding,
mental
health
and
disability
services
5
funding,
commercial
and
industrial
property
tax
replacement
6
payments,
and
other
specified
tax
provisions.
7
DIVISION
I
——
MENTAL
HEALTH
FUNDING.
Division
I
of
the
bill
8
relates
to
mental
health
and
disability
services
funding.
9
The
bill
creates
a
mental
health
and
disability
services
10
regional
supplement
fund
under
the
authority
of
the
department
11
of
human
services.
For
each
fiscal
year
beginning
on
or
after
12
July
1,
2021,
the
bill
appropriates
from
the
general
fund
of
13
the
state
to
the
mental
health
and
disability
services
regional
14
supplement
fund
an
amount
necessary
to
make
all
regional
15
supplement
payments
for
that
fiscal
year.
The
moneys
available
16
in
a
fiscal
year
in
the
mental
health
and
disability
services
17
state
supplement
fund
are
appropriated
to
the
department
of
18
human
services
for
distribution
to
each
mental
health
and
19
disability
services
region
on
a
per
capita
basis
calculated
20
using
each
region’s
population
for
that
fiscal
year.
The
21
amount
of
each
region’s
regional
supplement
payment
is
as
22
follows:
(1)
for
the
fiscal
year
beginning
July
1,
2021,
an
23
amount
equal
to
the
product
of
$15.86
multiplied
by
the
sum
of
24
the
region’s
population
for
the
fiscal
year;
(2)
for
the
fiscal
25
year
beginning
July
1,
2022,
an
amount
equal
to
the
product
of
26
$38
multiplied
by
the
sum
of
the
region’s
population
for
the
27
fiscal
year;
(3)
for
the
fiscal
year
beginning
July
1,
2023,
28
an
amount
equal
to
the
product
of
$40
multiplied
by
the
sum
of
29
the
region’s
population
for
the
fiscal
year;
(4)
for
the
fiscal
30
year
beginning
July
1,
2024,
an
amount
equal
to
the
product
of
31
$42
multiplied
by
the
sum
of
the
region’s
population
for
the
32
fiscal
year;
and
(5)
for
each
fiscal
year
beginning
on
or
after
33
July
1,
2025,
an
amount
equal
to
the
product
of
the
sum
of
the
34
region’s
population
for
the
fiscal
year
multiplied
by
the
sum
35
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of
the
dollar
amount
used
to
calculate
the
regional
supplement
1
payments
for
the
immediately
preceding
fiscal
year
plus
the
2
regional
supplement
growth
factor
for
the
fiscal
year.
The
3
bill
defines
“regional
supplement
growth
factor”
for
a
fiscal
4
year
to
be
an
amount
equal
to
the
product
of
the
dollar
amount
5
used
to
calculate
the
regional
supplement
payments
for
the
6
immediately
preceding
fiscal
year
multiplied
by
the
percent
7
increase,
if
any,
in
the
amount
of
sales
tax
revenue
deposited
8
into
the
general
fund
of
the
state
between
the
fiscal
year
9
beginning
three
years
prior
to
the
applicable
fiscal
year
and
10
the
fiscal
year
beginning
two
years
prior
to
the
applicable
11
year,
but
not
to
exceed
1.5
percent.
12
Regional
supplement
payments
received
by
a
region
are
13
paid
in
quarterly
installments
and
shall
be
deposited
in
the
14
region’s
combined
account
under
Code
section
331.391
and
used
15
solely
for
providing
mental
health
and
disability
services
16
under
the
regional
service
system
management
plan.
17
Under
the
bill,
for
the
fiscal
years
beginning
July
1,
2021,
18
and
July
1,
2022,
each
mental
health
and
disability
services
19
region
for
which
the
region’s
cash
flow
amount
certified
20
during
the
fiscal
year
exceeds
a
specified
percentage
of
the
21
proposed
gross
expenditures
of
the
region
for
the
fiscal
year,
22
the
remaining
quarterly
payments
of
the
region’s
regional
23
supplement
payment
are
reduced
by
an
amount
equal
to
the
amount
24
by
which
the
region’s
cash
flow
amount
certified
exceeds
the
25
specified
percentage
of
the
proposed
gross
expenditures
of
the
26
region
for
the
fiscal
year,
but
the
reduction
amount
shall
not
27
exceed
the
total
amount
of
the
region’s
regional
supplement
28
payment
for
the
fiscal
year.
If
the
region’s
remaining
29
quarterly
payments
are
insufficient
to
effectuate
the
required
30
reductions,
the
region
is
required
to
pay
to
the
department
of
31
human
services
any
amount
for
which
the
reduction
in
quarterly
32
payments
could
not
be
made.
33
For
the
fiscal
year
beginning
July
1,
2023,
and
each
34
succeeding
fiscal
year,
each
mental
health
and
disability
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services
region
for
which
a
cash
flow
amount
is
certified
1
during
the
fiscal
year,
the
remaining
quarterly
payments
of
the
2
region’s
regional
supplement
payment
shall
be
reduced
by
an
3
amount
equal
to
the
amount
certified,
but
the
reduction
amount
4
shall
not
exceed
the
total
amount
of
the
region’s
regional
5
supplement
payment
for
the
fiscal
year.
If
the
region’s
6
remaining
quarterly
payments
are
insufficient
to
effectuate
7
the
required
reductions,
the
region
is
required
to
pay
to
the
8
department
of
human
services
any
amount
for
which
the
reduction
9
in
quarterly
payments
could
not
be
made.
10
The
amount
of
reductions
to
quarterly
payments
and
amounts
11
paid
to
the
department
of
human
services
as
the
result
of
a
12
region’s
certified
cash
flow
amounts
shall
be
transferred
and
13
credited
to
the
risk
pool
created
in
the
bill
under
new
Code
14
section
426B.6.
15
The
bill
also
establishes
a
risk
pool
in
the
property
tax
16
relief
fund
under
Code
section
426B.1
to
provide
additional
17
funding
to
mental
health
and
disability
services
regions
18
meeting
certain
eligibility
criteria.
The
risk
pool
consists
19
of
moneys
appropriated
or
credited
to
the
risk
pool
by
law.
20
The
bill
appropriates
$9,960,590
from
the
general
fund
of
the
21
state
to
the
risk
pool
for
the
fiscal
year
beginning
July
1,
22
2021.
The
bill
appropriates
$5,107,340
from
the
general
fund
23
of
the
state
to
the
risk
pool
for
the
fiscal
year
beginning
24
July
1,
2022.
For
each
fiscal
year
beginning
on
or
after
July
25
1,
2025,
the
bill
appropriates
an
amount
equal
to
the
risk
pool
26
growth
factor
multiplied
by
the
ending
balance
of
the
risk
pool
27
at
the
conclusion
of
a
specified
fiscal
year.
The
“risk
pool
28
growth
factor”
for
each
fiscal
year
is
the
percent
increase,
29
if
any,
in
the
amount
of
sales
tax
revenue
deposited
into
the
30
general
fund
of
the
state
between
the
fiscal
year
beginning
31
three
years
prior
to
the
applicable
fiscal
year
and
the
fiscal
32
year
beginning
two
years
prior
to
the
applicable
year,
minus
33
1.5
percent.
The
risk
pool
growth
factor
for
any
fiscal
year
34
may
not
exceed
3.5
percent.
35
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The
bill
establishes
the
composition
of
the
risk
pool
board
1
created
in
the
bill.
Members
shall
serve
for
three-year
2
terms.
Staff
assistance
to
the
board
shall
be
provided
by
the
3
department
of
human
services.
4
A
regional
administrator
must
apply
to
the
risk
pool
board
5
for
assistance
from
the
risk
pool
on
or
before
October
31.
6
The
purpose
of
the
assistance
shall
be
to
provide
financial
7
support
for
services
provided
by
the
regional
administrator’s
8
mental
health
and
disability
services
region.
The
board
is
9
required
to
determine
application
requirements
to
ensure
10
prudent
use
of
risk
pool
assistance.
The
board
may
accept
or
11
reject
an
application
for
assistance
in
whole
or
in
part.
The
12
decision
of
the
board
is
final.
The
total
amount
of
risk
pool
13
assistance
shall
be
limited
to
the
amount
available
in
the
risk
14
pool
for
a
fiscal
year.
Any
unobligated
balance
in
the
risk
15
pool
at
the
close
of
a
fiscal
year
shall
remain
in
the
risk
pool
16
for
distribution
in
the
succeeding
fiscal
year.
17
Risk
pool
assistance
shall
only
be
made
available
to
18
address
one
or
more
of
the
following
circumstances:
(1)
19
continuing
support
for
mandated
services;
(2)
avoiding
the
need
20
for
reduction
or
elimination
of
critical
services
when
the
21
reduction
or
elimination
places
consumers’
health
or
safety
22
at
risk;
(3)
avoiding
the
need
for
reduction
or
elimination
23
of
a
mobile
crisis
team
or
other
critical
emergency
services
24
when
the
reduction
or
elimination
places
the
public’s
health
25
or
safety
at
risk;
(4)
avoiding
the
need
for
reduction
or
26
elimination
of
the
services
or
other
support
provided
to
entire
27
populations
of
consumers
with
disabilities;
and
(5)
avoiding
28
the
need
for
reduction
or
elimination
of
services
or
other
29
support
that
maintain
consumers
in
a
community
setting
or
that
30
would
create
a
risk
that
the
consumers
would
be
placed
in
more
31
restrictive,
higher
cost
settings.
32
The
risk
pool
board
shall
make
its
final
decisions
on
or
33
before
December
15
regarding
acceptance
or
rejection
of
the
34
applications
for
assistance
and
the
total
amount
accepted
35
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shall
be
considered
obligated.
The
bill
establishes
basic
1
eligibility
for
risk
pool
assistance,
including
requirements
2
that
the
mental
health
and
disability
services
region
is
in
3
compliance
with
the
regional
service
system
management
plan
4
requirements
and
that
the
region
meets
specified
ending
balance
5
thresholds
for
certain
fiscal
years.
The
ending
balance
6
thresholds
are
a
specified
percentage
of
the
actual
gross
7
expenditures
of
the
mental
health
and
disability
services
8
region
for
a
specific
fiscal
year.
The
percentage
for
the
9
fiscal
year
beginning
July
1,
2021,
is
40
percent.
The
10
percentage
for
the
fiscal
year
beginning
July
1,
2022,
is
20
11
percent.
12
Current
Code
section
331.424A
authorizes
each
county
to
13
certify
a
property
tax
levy
for
payment
of
mental
health
and
14
disability
services
within
the
mental
health
and
disability
15
services
regional
system.
To
coincide
with
the
appropriation
16
and
payment
of
mental
health
and
disability
services
regional
17
supplement
payments
directly
to
the
regions
or
to
exempted
18
counties,
the
bill
ends
the
authority
for
such
a
property
tax
19
levy
starting
with
the
fiscal
year
beginning
July
1,
2022.
20
Additionally,
upon
conclusion
of
the
fiscal
year
beginning
July
21
1,
2021,
the
county
treasurer
shall
transfer
the
remaining
22
balance
of
the
county’s
county
services
fund
to
the
county’s
23
region
to
which
the
county
belongs
in
the
fiscal
year
beginning
24
July
1,
2022,
for
deposit
in
the
region’s
combined
account
25
under
Code
section
331.391.
Effective
July
1,
2022,
the
bill
26
prohibits
a
county
from
transferring
any
funds
of
the
county
to
27
the
combined
account
of
a
mental
health
and
disability
services
28
region.
29
If
the
bill
takes
effect
after
March
31,
2021,
for
each
30
county
for
which
the
amount
of
taxes
certified
for
levy
for
the
31
purposes
of
Code
section
331.424A
for
the
fiscal
year
beginning
32
July
1,
2021,
exceeds
the
product
of
the
population
of
the
33
county
multiplied
by
$21.14,
the
department
of
management
shall
34
reduce
the
amount
of
such
taxes
certified
for
levy
to
an
amount
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not
to
exceed
the
product
of
the
population
of
the
county
1
multiplied
by
$21.14
and
shall
revise
the
rate
of
taxation
2
as
necessary
to
raise
the
reduced
amount.
The
department
of
3
management
is
required
to
report
the
reduction
in
the
certified
4
taxes
and
the
revised
rate
of
taxation
to
the
county
auditors
5
by
June
15,
2021.
6
In
order
to
timely
implement
the
provisions
of
the
bill
7
establishing
the
risk
pool
for
mental
health
and
disability
8
services
regions
for
the
fiscal
year
beginning
July
1,
2021,
9
and
the
fiscal
year
beginning
July
1,
2022,
the
director
10
of
human
services
is
required,
subject
to
the
membership
11
requirements
in
the
bill,
to
appoint
temporary
members
of
the
12
risk
pool
board
to
review
and
approve
risk
pool
assistance
13
applications
and
establish
alternative
application
deadlines
14
and
expedited
application
review
and
approval
timelines.
15
The
bill
provides
that
the
department
of
human
services
may
16
adopt
emergency
rules
to
implement
the
provisions
of
division
17
I
of
the
bill.
18
Except
as
provided
in
division
I
of
the
bill,
division
I
of
19
the
bill
takes
effect
upon
enactment.
20
DIVISION
II
——
PROPERTY
TAX
REPLACEMENT
PAYMENTS.
Current
21
Code
section
441.21A
establishes
and
appropriates
amounts
from
22
the
general
fund
of
the
state
for
commercial
and
industrial
23
property
tax
replacement
claims.
Such
claims
are
calculated
24
by
the
department
of
revenue
based
on
the
difference
between
25
the
actual
value
and
assessed
value
of
all
commercial
and
26
industrial
property
in
each
taxing
district
in
the
state.
27
Current
law
appropriates
an
amount
necessary
for
the
payment
28
of
all
commercial
and
industrial
property
tax
replacement
29
claims
for
each
fiscal
year
beginning
on
or
after
July
1,
30
2014,
subject
to
a
maximum
total
appropriation
for
fiscal
31
years
beginning
on
or
after
July
1,
2017,
of
the
total
32
amount
necessary
for
the
payment
of
replacement
claims
in
the
33
fiscal
year
beginning
July
1,
2016.
The
bill
eliminates
the
34
appropriation
for
fiscal
years
beginning
on
or
after
July
1,
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2027,
and
specifies
that
the
maximum
total
appropriation
for
1
the
fiscal
years
beginning
on
or
after
July
1,
2022,
but
before
2
July
1,
2027,
shall
not
exceed
the
total
amount
necessary
for
3
the
payment
of
replacement
claims
in
the
fiscal
year.
4
The
bill
modifies
the
methodology
for
calculating
and
5
apportioning
commercial
and
industrial
property
tax
replacement
6
claims
for
fiscal
years
beginning
on
or
after
July
1,
2022,
7
but
before
July
1,
2027.
The
bill
requires
such
claims
to
be
8
calculated
based
on
and
paid
to
taxing
authorities,
as
defined
9
in
the
bill,
instead
of
taxing
districts
as
is
required
under
10
current
law.
The
amount
of
each
taxing
authority’s
replacement
11
claim
is
determined
based
on
specified
fractions
of
the
amount
12
received
by
the
taxing
authority
under
Code
section
441.21A
for
13
the
fiscal
year
beginning
July
1,
2021,
as
calculated
by
the
14
department
of
revenue
in
consultation
with
the
department
of
15
management,
and
whether
the
taxing
authority
is
a
qualified
16
taxing
authority.
The
specified
fractions
are
reduced
over
17
the
period
of
fiscal
years
beginning
July
1,
2022,
and
ending
18
June
30,
2027,
in
the
case
of
a
qualified
taxing
authority,
and
19
ending
June
30,
2025,
in
the
case
of
a
taxing
authority
that
20
is
not
a
qualified
taxing
authority.
Under
the
bill,
a
taxing
21
authority
that
is
eligible
to
continue
to
receive
commercial
22
and
industrial
property
tax
replacement
payments
includes
a
23
city,
county,
community
college,
or
other
governmental
entity
24
or
political
subdivision
in
this
state
authorized
to
certify
a
25
levy
on
property
located
within
such
authority,
but
does
not
26
include
a
school
district.
A
qualified
taxing
authority
is
27
either
a
taxing
authority
that
is
not
a
city
or
a
county
or
a
28
taxing
authority
that
is
a
city
or
a
county
in
which
the
total
29
assessed
value
as
of
January
1,
2019,
of
specified
taxable
30
property
located
in
the
taxing
authority
is
less
than
131.14
31
percent
of
the
total
assessed
value
as
of
January
1,
2012,
of
32
specified
taxable
property
located
in
the
taxing
authority.
33
The
bill
requires
each
taxing
authority’s
property
tax
34
replacement
claim
payment
for
fiscal
years
beginning
on
or
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after
July
1,
2022,
but
before
July
1,
2027,
to
be
apportioned
1
and
credited
by
the
governing
body
of
the
taxing
authority
2
among
the
taxing
authority’s
tax
levies
in
the
same
proportion
3
that
each
property
tax
levy
bears
to
the
total
of
all
property
4
tax
levies
imposed
by
the
taxing
authority
for
the
fiscal
year
5
for
which
the
payment
is
received.
The
bill
also
establishes
6
requirements
for
the
apportionment
of
amounts
allocated
to
7
property
tax
levies
that
are
subject
to
a
division
of
taxes
8
under
Code
section
403.19
(tax
increment
financing).
9
Under
current
law,
the
legislative
tax
expenditure
committee
10
established
under
Code
section
2.48
is
required
to
review
11
the
commercial
and
industrial
property
tax
replacement
claim
12
expenditures.
The
bill
eliminates
that
required
periodic
13
review.
14
DIVISION
III
——
SCHOOL
FOUNDATION
PERCENTAGE.
For
15
purposes
of
calculating
state
foundation
aid
received
by
16
school
districts
under
Code
chapter
257,
the
regular
program
17
foundation
base
per
pupil
is
87.5
percent
of
the
regular
18
program
state
cost
per
pupil.
The
bill
increases
that
19
percentage
to
88.4
percent
for
school
budget
years
beginning
on
20
or
after
July
1,
2022.
21
The
section
of
division
III
amending
Code
section
22
257.3(1)(d)
takes
effect
July
1,
2022.
23
DIVISION
IV
——
PUBLIC
EDUCATION
AND
RECREATIONAL
TAX
LEVY.
24
Code
chapter
300
authorizes
the
imposition
of
a
voter-approved
25
property
tax
levy
for
the
establishment
and
maintenance
26
of
public
recreation
places
and
playgrounds,
and
necessary
27
accommodations
for
the
recreation
places
and
playgrounds,
in
28
the
public
school
buildings
and
grounds
of
the
district.
Code
29
chapter
300
also
authorizes
each
school
board
to
cooperate
30
with
public
or
private
agencies
having
custody
and
management
31
of
public
parks
or
buildings
or
grounds
open
to
the
public
32
for
the
supervision
and
instruction
necessary
to
carry
on
33
public
educational
and
recreational
activities
in
the
parks,
34
buildings,
and
grounds
located
within
the
district.
Such
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activities
may
be
supported
by
imposition
of
a
voter-approved
1
property
tax
levy
not
to
exceed
$0.13
and
one-half
cents
per
2
$1,000
of
assessed
value.
The
property
tax
levy
under
Code
3
chapter
300
also
provides
financial
support
to
community
4
education
programs
established
under
Code
chapter
276,
5
which
provide
educational,
recreational,
cultural,
and
other
6
community
services
and
programs.
7
Division
IV
of
the
bill
repeals
Code
chapter
300
and
makes
8
corresponding
amendments
to
other
provisions
of
law
effective
9
July
1,
2022,
and
applies
to
fiscal
years
beginning
on
or
10
after
July
1,
2022.
The
bill
provides
that
financial
support
11
for
a
community
education
program
under
Code
chapter
276
may
12
be
provided
from
funds
received
by
the
school
district
under
13
Code
chapter
423F.
By
operation
of
the
definition
of
“school
14
infrastructure”
under
Code
section
423F.3(6)(a)(1),
moneys
15
received
by
a
school
district
from
the
secure
an
advanced
16
vision
for
education
fund
may
continue
to
be
utilized
for
17
activities
previously
provided
for
under
Code
chapter
300
and
18
Code
chapter
276.
19
Division
IV
also
provides
that
moneys
available
in
the
20
public
education
and
recreation
levy
fund
at
the
conclusion
21
of
the
fiscal
year
beginning
July
1,
2021,
and
ending
June
22
30,
2022,
shall
be
expended
by
the
school
corporation
for
the
23
purposes
authorized
under
chapter
300,
Code
2021.
24
DIVISION
V
——
ELDERLY
PROPERTY
TAX
CREDIT.
Division
V
of
the
25
bill
modifies
the
eligibility
for
and
the
calculation
of
the
26
amount
of
the
property
tax
credit
for
persons
ages
70
and
older
27
under
Code
chapter
425,
subchapter
II.
28
Under
the
bill,
a
person
filing
a
claim
for
the
property
tax
29
credit
who
is
at
least
70
years
of
age
and
who
has
a
household
30
income
of
less
than
250
percent
of
the
federal
poverty
level
31
is
eligible
to
receive
a
credit
against
property
taxes
due
on
32
the
claimant’s
homestead.
For
such
a
claimant,
the
tentative
33
credit
amount
is
equal
to
the
greater
of
the
following:
(1)
34
the
amount
of
the
credit
as
calculated
under
the
schedule
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of
credit
amounts
specified
in
Code
section
425.23(1)(a)
as
1
if
the
claimant
was
an
eligible
claimant
for
a
credit
under
2
that
provision;
and
(2)
the
difference
between
the
actual
3
amount
of
property
taxes
due
on
the
homestead
during
the
4
applicable
fiscal
year
minus
the
actual
amount
of
property
5
taxes
due
on
the
homestead
based
on
a
full
assessment
during
6
the
first
fiscal
year
for
which
the
claimant
filed
for
a
credit
7
calculated
under
the
bill
and
if
the
claimant
has
filed
for
the
8
credit
for
each
of
the
subsequent
fiscal
years
after
the
first
9
credit
claimed.
10
The
bill
also
modifies
the
appropriation
to
the
elderly
11
and
disabled
property
tax
credit
and
reimbursement
fund
under
12
Code
section
425.39,
by
limiting
the
amount
of
the
credit
to
13
be
paid
by
the
director
of
revenue
to
each
county
treasurer
14
for
claimants
who
have
reached
70
years
of
age
and
specifies
15
that
Code
section
25B.7(1),
which
requires
the
state
to
fund
16
the
cost
of
providing
new
property
tax
credits,
shall
not
apply
17
to
the
amount
of
the
credit
in
excess
of
the
amount
paid
by
the
18
director
of
revenue
as
determined
in
the
bill.
19
Division
V
of
the
bill
applies
to
claims
under
Code
chapter
20
425,
subchapter
II,
filed
on
or
after
January
1,
2022.
21
DIVISION
VI
——
FUTURE
TAX
CHANGES.
The
bill
amends
2018
Iowa
22
Acts,
chapter
1161,
section
133
(trigger),
by
striking
the
two
23
conditions
necessary
for
the
trigger
to
occur,
and
specifies
24
the
provisions
in
2018
Iowa
Acts,
chapter
1161,
sections
25
99-132,
take
effect
January
1,
2023.
26
Currently,
the
two
conditions
are
necessary
for
the
trigger
27
to
occur
include
net
general
fund
revenues
for
the
fiscal
year
28
ending
June
30,
2022,
equaling
or
exceeding
$8.3146
billion,
29
and
also
equaling
or
exceeding
104
percent
of
the
net
general
30
fund
revenues
for
the
fiscal
year
ending
June
30,
2021.
If
31
these
two
conditions
are
not
satisfied,
current
law
institutes
32
the
changes
for
tax
years
beginning
on
or
after
the
January
1
33
following
the
first
fiscal
year
for
which
the
two
conditions
34
do
occur.
By
striking
the
“trigger”,
the
bill
sets
in
motion
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numerous
tax
changes
for
tax
years
beginning
on
or
after
1
January
1,
2023,
described
below.
2
INDIVIDUAL
INCOME
TAX.
The
tax
changes
include
reducing
the
3
number
of
individual
income
tax
brackets
from
nine
to
four,
and
4
modifying
the
taxable
income
amounts
and
tax
rates
as
follows:
5
Income
over:
But
not
over:
Tax
Rate:
6
1)
$0
$6,000
4.40%
7
2)
$6,000
$30,000
4.82%
8
3)
$30,000
$75,000
5.70%
9
4)
$75,000
6.50%
10
For
a
married
couple
filing
a
joint
return,
the
taxable
11
income
amounts
in
each
bracket
above
are
doubled.
Also,
the
12
taxable
income
amounts
in
each
bracket
above
will
be
indexed
to
13
inflation
and
increased
in
future
tax
years,
beginning
in
the
14
tax
year
following
the
2023
tax
year.
15
INDIVIDUAL
INCOME
TAX
CALCULATION.
Under
current
law,
the
16
starting
point
for
computing
the
Iowa
individual
income
tax
is
17
federal
adjusted
gross
income
before
the
net
operating
loss
18
deduction,
which
is
generally
a
taxpayer’s
gross
income
minus
19
several
deductions.
From
that
point,
Iowa
requires
several
20
adjustments
and
then
provides
taxpayers
with
a
deduction
21
for
federal
income
taxes
paid,
and
the
option
to
deduct
a
22
standard
deduction
or
itemized
deductions.
The
bill
changes
23
the
starting
point
for
computing
the
individual
income
tax
24
to
federal
taxable
income,
which
includes
all
deductions
and
25
adjustments
taken
at
the
federal
level
in
computing
tax,
26
including
a
standard
deduction
or
itemized
deductions,
and
the
27
qualified
business
income
deduction
allowed
for
certain
income
28
earned
from
a
pass-through
entity.
Because
the
starting
point
29
changes
to
federal
taxable
income,
and
federal
law
does
not
30
provide
for
the
filing
status
of
married
filing
separately
31
on
a
combined
return,
the
bill
repeals
that
filing
status
32
option
for
Iowa
tax
purposes.
Because
net
operating
loss
is
33
no
longer
calculated
at
the
state
level,
the
bill
requires
a
34
taxpayer
to
add
back
any
federal
net
operating
loss
deduction
35
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carried
over
from
a
taxable
year
beginning
prior
to
the
2023
1
tax
year,
but
allows
taxpayers
to
deduct
any
remaining
Iowa
net
2
operating
loss
from
a
prior
taxable
year.
The
bill
repeals
the
3
individual
alternative
minimum
tax
(AMT),
allows
an
individual
4
to
claim
any
remaining
AMT
credit
against
the
individual’s
5
regular
tax
liability
for
the
2023
tax
year,
and
then
repeals
6
the
AMT
credit
in
the
tax
year
following
the
2023
tax
year.
7
The
bill
repeals
most
Iowa-specific
deductions,
exemptions,
8
and
adjustments
currently
available
when
computing
net
income
9
and
taxable
income
under
Iowa
law,
including
the
Iowa
optional
10
standard
deduction
and
all
itemized
deductions,
and
the
ability
11
to
deduct
federal
income
taxes,
except
for
a
one-year
phase
12
out
in
the
2023
tax
year
for
taxes
paid,
or
refunds
received,
13
that
relate
to
a
prior
year.
The
bill
maintains
the
add-back
14
for
income
from
securities
that
are
federally
exempt
but
not
15
state-exempt,
and
for
bonus
depreciation
amounts.
The
bill
16
maintains
the
general
pension
exclusion
and
the
deduction
17
for
income
from
federal
securities.
The
bill
maintains
the
18
deduction
for
contributions
to
the
Iowa
529
plan,
the
Iowa
ABLE
19
plan,
a
first-time
homebuyer
savings
account,
and
an
individual
20
development
account.
The
bill
also
maintains
the
deductions
21
for
military
pension
income,
military
active
duty
pay,
social
22
security
retirement
benefits,
certain
payments
received
for
23
providing
unskilled
in-home
health
care,
certain
amounts
24
received
from
the
veterans
trust
fund,
victim
compensation
25
awards,
biodiesel
production
refunds,
certain
wages
paid
26
to
individuals
with
disabilities
or
individuals
previously
27
convicted
of
a
felony,
certain
organ
donations,
and
Segal
28
AmeriCorps
education
award
payments.
The
bill
modifies
the
29
existing
deduction
for
health
insurance
payments
in
Code
30
section
422.7(29)
to
make
the
deduction
only
applicable
to
31
taxpayers
who
are
at
least
65
years
old
and
who
have
net
32
income
below
$100,000.
The
bill
also
modifies
the
existing
33
capital
gain
deduction
in
Code
section
422.7(21)
to
restrict
34
the
deduction
to
the
sale
of
real
property
used
in
farming
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businesses
by
permitting
the
taxpayer
to
take
the
deduction
1
if
either
of
the
following
apply:
the
taxpayer
materially
2
participated
in
the
farming
business
for
at
least
10
years
and
3
held
the
real
property
for
at
least
10
years;
or
the
taxpayer
4
sold
the
real
property
to
a
relative.
The
bill
expands
the
5
definition
of
“relative”
to
include
an
entity
in
which
a
6
relative
of
the
taxpayer
has
a
legal
or
equitable
interest
in
7
the
entity
as
an
owner,
member,
partner,
or
beneficiary.
The
8
bill
provides
a
new
deduction
for
any
income
of
an
employee
9
resulting
from
the
payment
by
an
employer,
whether
paid
to
10
the
employee
or
a
lender,
of
principal
or
interest
on
the
11
employee’s
qualified
education
loan.
The
bill
also
modifies
12
the
calculation
of
net
income
for
purposes
of
the
alternate
13
tax
calculation
in
Code
section
422.5(3)
and
(3B),
and
the
tax
14
return
filing
thresholds
in
Code
section
422.13,
to
require
15
that
any
amount
of
itemized
deduction,
standard
deduction,
16
personal
exemption
deduction,
or
qualified
business
income
17
deduction
that
was
allowed
in
computing
federal
taxable
income
18
shall
be
added
back.
19
CORPORATE
INCOME
TAX
AND
FRANCHISE
TAX
CALCULATION.
Under
20
current
law,
the
starting
point
for
calculating
the
corporate
21
income
tax
and
franchise
tax
is
federal
taxable
income
before
22
the
net
operating
loss
deduction,
because
net
operating
loss
is
23
calculated
at
the
state
level.
The
bill
repeals
the
separate
24
calculation
of
net
operating
loss
at
the
state
level.
As
a
25
result,
the
bill
requires
taxpayers
to
add
back
any
federal
26
net
operating
loss
deduction
carried
over
from
a
taxable
year
27
beginning
prior
to
the
trigger
year,
but
allows
taxpayers
to
28
deduct
any
remaining
Iowa
net
operating
loss
from
a
prior
29
taxable
year.
The
bill
also
repeals
most
Iowa-specific
30
deductions,
exemptions,
and
adjustments
currently
available
31
when
computing
net
income
and
taxable
income
under
Iowa
law.
32
The
bill
maintains
the
add-back
for
income
from
securities
33
that
are
federally
exempt
but
not
state
exempt,
and
for
bonus
34
depreciation
amounts.
The
bill
maintains
the
deductions
for
35
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income
from
federal
securities,
for
foreign
dividend
and
1
subpart
F
income,
for
certain
wages
paid
to
individuals
with
2
disabilities
or
individuals
previously
convicted
of
a
felony,
3
and
for
biodiesel
production
refunds.
4
DIVISION
VII
——
CHARITABLE
CONSERVATION
CONTRIBUTION
TAX
5
CREDIT.
Division
VII
of
the
bill
repeals
the
charitable
6
conservation
contribution
tax
credit
available
against
the
7
individual
and
corporate
income
taxes.
Currently,
individual
8
and
corporate
income
taxes
are
reduced
by
an
amount
equal
to
50
9
percent
of
the
fair
market
value
of
real
property
located
in
10
this
state
that
is
conveyed
unconditionally
in
perpetuity
by
11
the
taxpayer
for
conservation
purposes.
Division
VII
of
the
12
bill
applies
to
such
conveyances
occurring
on
or
after
July
1,
13
2021.
14
DIVISION
VIII
——
FOREST
RESERVATIONS.
Current
Code
chapter
15
427C
authorizes
a
property
tax
exemption
for
certain
forest
16
reservations
and
fruit-tree
reservations.
17
The
bill
provides
that
for
assessment
years
beginning
on
18
or
after
January
1,
2022,
a
forest
reservation
is
allowed
the
19
exemption
authorized
under
Code
chapter
427C
if
the
owner
is
20
actively
engaged
in
the
operation
or
management
of
the
forest
21
reservation.
For
each
forest
reservation
exemption
for
which
22
the
application
was
filed
on
or
before
the
effective
date
of
23
division
VIII
of
the
bill,
in
order
to
receive
or
continue
24
receiving
the
exemption,
the
owner
must
file
by
February
25
1,
2022,
on
a
form
prepared
by
the
department
of
natural
26
resources,
evidence
that
the
owner
meets
the
requirements
27
for
active
engagement
in
the
operation
or
management
of
the
28
reservation.
29
Division
VIII
of
the
bill
grants
the
department
of
natural
30
resources
the
authority
to
adopt
rules
to
interpret
the
31
provisions
of
the
bill
relating
to
the
requirement
that
the
32
owner
be
actively
engaged
in
the
operation
or
management
33
of
the
forest
reservation.
If
interpretive
rulemaking
34
authority
is
clearly
vested
in
the
discretion
of
an
agency
by
35
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statute,
the
applicable
judicial
standard
of
review
is
whether
1
the
rules
constitute
an
irrational,
illogical,
or
wholly
2
unjustifiable
interpretation
of
law
by
the
agency
(Code
section
3
17A.19(10)(l)).
If
interpretive
rulemaking
authority
is
not
4
clearly
vested
in
the
discretion
of
an
agency,
the
applicable
5
judicial
standard
of
review
is
whether
the
rules
constitute
an
6
erroneous
interpretation
of
law
(Code
section
17A.19(10)(c)).
7
The
bill
limits
the
period
of
the
exemption
for
forest
8
reservations
to
five
years
and
provides
that
the
five-year
9
exemption
period
for
applications
filed
on
or
before
February
10
1,
2022,
begins
with
the
assessment
year
beginning
January
11
1,
2022,
unless,
if
applicable,
the
owner
fails
to
satisfy
12
the
requirement
in
the
bill
to
provide
evidence
of
being
13
actively
engaged
in
the
operation
or
management
of
the
forest
14
reservation.
15
The
bill
also
specifies
that
upon
expiration
of
the
16
applicable
exemption
period
for
forest
reservations
or
17
fruit-tree
reservations
under
Code
chapter
427C,
the
owner
may
18
reapply
for
an
exemption
if
the
property
meets
all
the
criteria
19
for
the
exemption
under
the
chapter.
20
The
bill
requires
the
department
of
natural
resources
to
21
review
each
application
for
a
forest
reservation
tax
exemption
22
before
the
application
is
accepted.
The
bill
requires
the
23
department
of
natural
resources
to
use
aerial
photographs
to
24
determine
forest
reservation
eligibility
and
authorizes
an
25
on-site
review,
if
necessary.
Additionally,
an
area
that
is
a
26
forest
reservation
may
be
inspected
each
year
by
the
department
27
of
natural
resources
to
determine
if
the
area
is
maintained
as
28
forest
reservation.
29
Division
VIII
of
the
bill
does
not
affect
the
operation
30
of,
or
prohibit
the
application
of,
prior
provisions
of
31
Code
chapter
427C
or
Code
section
441.22,
or
rules
adopted
32
to
administer
prior
provisions
of
Code
chapter
427C
or
33
Code
section
441.22,
for
assessment
years
beginning
before
34
January
1,
2022,
and
for
duties,
powers,
protests,
appeals,
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