HSB 126

Senate File 514 relates to the organization, structure, and functions of State government. Division IV (Department of Justice), Division VI (Economic Development Authority Partner State Program), and Division XIII (Department for the Blind) take effect upon enactment. Division XVIII (Salaries of Appointed State Officers) takes effect June 23, 2023. Note: The following information was provided to the Legislative Services Agency (LSA) by State agencies as of March 14, 2023.

Division I — Department of Health and Human Services

Description and Background

Division I relates to the merging of the Department of Human Services (DHS), the Department of Public Health (DPH), the Department on Aging (IDA), the Department of Human Rights (DHR), Early Childhood Iowa (ECI), and the Iowa Commission on Volunteer Service (ICVS) into the consolidated Department of Health and Human Services (HHS). Division I makes the following changes:

• Eliminates the positions of the Director of the DPH, IDA, and DHR.
• Eliminates references to the subunit structure and the heads of the subunits of the HHS and the other agencies incorporated into the HHS within the Department and makes the Director of the HHS responsible for these agencies and their divisions, including:
• Center for Rural Health and Primary Care.
• Center for Congenital and Inherited Disorders.
• Oral Health and Delivery Systems Bureau and the State Public Health Dental Director.
• Division of Tobacco Use Prevention and Control and its Administrator.
• Division for Records and Statistics.
• Bureau of Professional Licensure.
• Division of Acute Disease Prevention and Emergency Response.
• Division of Mental Health and Disability Services (MHDS) and its Administrator.
• Administrator of State Mental Health Institutes (MHIs) and State Resource Centers (SRCs).
• Division related to income and service programs and its Administrator.
• Administrator of the Child Support Recovery Unit (CSRU).
• Division of Adult, Children, and Family Services and its Administrator.
• Division of Community Advocacy and Services.
• Division of Community Action Agencies and its Administrator.
• Division of Criminal and Juvenile Justice Planning and its Administrator.
• Eliminates certain representation from the HHS on all boards, commissions, committees, and other entities incorporated into the HHS.
• Changes current Iowa Code references to food stamps to refer to the Supplemental Nutrition Assistance Program (SNAP).
• Designates a record check evaluation system to refer to the process used by the HHS to perform child and dependent adult abuse record checks and to evaluate criminal history and abuse records.
• Eliminates the State Board of Health and incorporates its functions into the Council on Health and Human Services. Expands the Council by two members, with at least one of them being a physician.
• Moves the Child Abuse Prevention Program Advisory Committee from Iowa Code chapter 217 to Iowa Code chapter 235A.
• Eliminates the University of Iowa as the home of the State Hygienic Laboratory.
• Moves the following duties to the HHS:
• Iowa Child Death Review Team from the Office of the State Medical Examiner.
• Iowa Domestic Abuse Death Review Team from an independent agency, and changes its membership.
• Responsibility for regulation of consumable hemp from the Department of Inspections and Appeals (DIA).
• Child Advocacy Board from the DIA.
• Repeals numerous Iowa Code provisions, including Iowa Code section 222.6, relating to resource center districts.
• Strikes the July 1, 2023, repeal date established by 2022 Iowa Acts, chapter 1098 (Juvenile Justice and Child and Family Welfare Act) regarding the formula for aid paid by the State, rules adopted by the Director of the HHS, standards for annual approval of the homes, and the establishment and purpose of the Juvenile Detention Home Fund. The striking of the repeal date allows these sections to continue indefinitely as currently enacted.
• Allows the HHS to employ or retain attorneys to provide legal counsel, in adherence with Iowa Code section 13.7.

2022 Iowa Acts, House File 2578 (FY 2023 Health and Human Services Appropriations Act), created the HHS and a transition process to move the DPH and its divisions and employees into the former DHS to form the HHS. The process was effective July 1, 2022, and is to be finalized by the end of FY 2023 and completed by July 1, 2023 (FY 2024).

Assumptions and Fiscal Impact

According to the HHS, Division I will eliminate 110.0 currently unfilled full-time equivalent (FTE) positions (out of 5,609.7 total FTE positions) due to the alignment across the DHS, DPH, IDA, and DHR. This will reduce overall department expenditures by approximately $6.4 million annually beginning in FY 2024, including $4.4 million annually from federal funds and $2.0 million annually from the State General Fund.

Division I eliminates annual fees paid by the DPH to the Auditor of State beginning in FY 2024. In FY 2022, the DPH paid the Auditor of State approximately $96,000; however, auditing costs to the HHS are likely to increase by a similar amount with the elimination of the DPH. Overall, auditing services for all entities transferring into the HHS under Division I are likely to remain similar to existing services, keeping costs relatively stable.

Overall, Division I reduces the number of annual and quarterly reports mandated to be filed by the HHS with the Legislature, including eliminating the DPH and DHR annual reports, which is likely to reduce workloads for existing employees.

Division I eliminates the State Board of Health, which is expected to reduce expenditures and Department workload by a minimal amount beginning in FY 2024. Board costs in FY 2022 totaled $1,700.

Division I allows the HHS to employ or retain attorneys to provide legal counsel, which may lead to new annual costs. However, these costs cannot be estimated at this time, as the HHS has made no decision on employing attorneys. The HHS would utilize savings resulting from Division I to fund any attorneys, if necessary.

Sources

• Legislative Services Agency
• Department of Health and Human Services
• Christopher Ubben )
• Eric Richardson )
• Division II — Department of Administrative Services
• Description and Background
• Division II transfers the Library Services duties and responsibilities of the Department of
• Education (DE) to the DAS. The State Librarian is transferred to the DAS and will be appointed
• by the Director of the DAS. The State Commission of Libraries currently appoints the State
• Librarian. This Commission is also transferred to the DAS. The State Archivist and duties
• related to State records and archives are transferred to the DAS. The Director of the
• Department of Cultural Affairs (DCA) is removed as a member of the State Records
• Commission.
• Division II transfers most of the duties of the Historical Division of the DCA and the
• Administrator of the Historical Division to the DAS and the Director of the DAS. The Historic
• Preservation Officer, as well as related duties concerning historic properties and historic
• preservation activities, are not transferred to the DAS. Division II establishes the Director of the
• DAS as the ex officio member of the Iowa Historical Records Advisory Board, instead of the
• Administrator of the Historical Division of the DCA. Division II transfers the Iowa Heritage Fund
• and the Historical Resource Development Program to the DAS. Division II requires the DAS to
• undertake responsibilities under Iowa Code chapter 305B, concerning museum property, which
• are currently undertaken by the DCA. Finally, Division II assigns control of the Battle Flag
• Restoration Fund from the DCA to the DAS.
• Assumptions and Fiscal Impact
• The DAS has stated that Division II has no fiscal impact to the State.
• Sources
• Department of Administrative Services
• Legislative Services Agency
• Anthony Arellano )
• Xavier Leonard )
• Division III — Department of Inspections, Appeals, and Licensing
• Description and Background
• Division III makes the following changes:
• • Renames the Department of Inspections and Appeals (DIA) to the Department of
• Inspections, Appeals, and Licensing (DIAL).
• • Modifies the organizational structure of the DIAL to include duties related to licensing and
• laws related to employee safety, labor standards, and workers’ compensation.
• • Eliminates the Investigations Division and Health Facilities Division of the DIAL and adds a
• Labor Services and Workers’ Compensation Division.
• • Transfers the duties of the Labor Services Division, the Labor Commissioner, the Workers’
• Compensation Division, and the current Commissioner of the Iowa Department of Workforce
• Development to the DIAL and the Director of the DIAL. Division III provides that the Labor
• Commissioner and the Workers’ Compensation Commissioner will serve at the pleasure of
• the Governor.
• • Transfers the licensing and regulation duties of certain fire control-related and building code-
• related activities from the Department of Public Safety (DPS) and the State Fire Marshal to
• the DIAL and the Director of the DIAL.
• • Establishes that the Director of the DIAL will also be the State Building Code Commissioner
• and transfers the applicable responsibilities from the Commissioner of Public Safety.
• • Transfers the licensing and regulation duties of certain health-related professions from the
• Department of Public Health (DPH) to the DIAL.
• • Eliminates the Professional Licensing and Regulation Bureau from the Department of
• Commerce. The duties of the Bureau and other responsibilities under the Department of
• Commerce will transfer to the DIAL.
• • Transfers allocation of certain School Infrastructure Fund moneys to the DIAL’s authority.
• Currently, under Iowa Code section 12.83, up to $50,000 of moneys deposited each fiscal
• year in the School Infrastructure Fund is allocated to the DPS for the use of the State Fire
• Marshal. The State Fire Marshal uses these funds to retain an architect or architectural firm
• to evaluate structures for which School Infrastructure Program grant applications are made,
• to consult with school district representatives, to review construction drawings and
• blueprints, and to perform related duties to ensure the best possible use of moneys received
• by a school district under the School Infrastructure Program. The State Fire Marshal is
• required to provide for the review of plans, drawings, and blueprints in a timely manner. The
• Bill shifts these responsibilities to the DIAL.
• • Transfers the responsibilities and associated funds of the DPS and State Fire Marshal under
• Iowa Code chapters 103 and 105 regarding electricians, electrical contractors, plumbers,
• mechanical professionals, and contractors to the DIAL and the Director of the DIAL.
• • Transfers the duty to appoint and supervise a full-time Executive Director for the Board of
• Medicine, the Board of Nursing, the Dental Board, and the Board of Pharmacy from the DPH
• to the DIAL and the Director of the DIAL.
• • Transfers responsibilities, associated funds, and duties concerning professional engineers
• and land surveyors, real estate brokers and salespersons, real estate appraisals and
• appraisers, real estate appraisal management companies, licensed architects, landscape
• architects, and registered interior designers from the Department of Commerce to the DIAL
• and the Director of the DIAL.
• • Moves the Iowa Civil Rights Commission under the DIAL so that it is no longer a stand-alone
• agency.
• • Establishes that administrative law judges examining unemployment security, the Iowa Civil
• Rights Commission, the Department of Education, special education, and the Board of
• Educational Examiners are to be employed by the Division of Administrative Hearings of the
• DIAL.
• Assumptions and Fiscal Impact
• According to the DIAL, Division III will eliminate 20.0 full-time equivalent (FTE) positions due to
• the alignment across the DIAL. This change will reduce the DIAL’s overall expenditures by
• approximately $1.4 million from other funds, which include federal funds and professional
• licensing fees and $162,000 from the State General Fund. The overall reduction in Department
• expenditures is approximately $1.6 million.
• Source
• Department of Inspections and Appeals
• Anthony Arellano )
• Xavier Leonard )
• Division IV — Department of Justice
• Description and Background
• Division IV makes changes regarding the provision of legal services to State governmental
• entities by the Attorney General, as follows:
• • Removes provisions allowing the Attorney General to appoint assistant attorneys general to
• perform and supervise the legal work of the Department of Revenue (IDR) and the Division
• of Child and Family Services of the Department of Human Services (DHS).
• • Removes a requirement for the Department of Public Safety (DPS) to employ an assistant
• attorney general.
• • Removes a provision related to an assistant attorney general serving as general counsel for
• the Department of Transportation (DOT) and directs the Attorney General to provide legal
• services for the DOT.
• • Allows the Attorney General to charge State governmental entities for the cost of performing
• legal services and to require State governmental entities to provide office space for an
• assistant attorney general or other staff providing legal services exclusively for that entity.
• • Changes the circumstances under which an entity of the State may employ private legal
• counsel.
• Division IV changes certain provisions for the appointment and removal of the Consumer
• Advocate by the Attorney General, removes the requirement that the Consumer Advocate be an
• attorney, and transfers employment responsibility for the Consumer Advocate Division from the
• Consumer Advocate to the Attorney General.
• Division IV removes a provision making certain employees of the Consumer Advocate Division
• of the Department of Justice subject to the merit system. Division IV also exempts all
• employees of the Department of Justice from collective bargaining. Under current law,
• nonsupervisory employees of the Consumer Advocate Division who are employed primarily to
• perform technical analysis of nonlegal issues are not exempt.
• Division IV provides that the Attorney General may prosecute a criminal proceeding on behalf of
• the State even if a county attorney does not request the Attorney General to act as a county
• attorney. Division IV also grants the Attorney General exclusive jurisdiction to prosecute
• election-related crimes. Under current law, county attorneys can also prosecute election-related
• crimes.
• Division IV modifies reporting requirements related to money settlement awards and court
• money awards that were awarded to the State.
• Division IV changes the title of the First Assistant Attorney General to Chief Deputy Attorney
• General. Division IV also eliminates the position of Special Assistant Attorney General for
• Claims and transfers the duties of the position to the Attorney General.
• Division IV takes effect upon enactment.
• Assumptions and Fiscal Impact
• The Department of Justice reports that Division IV will have no fiscal impact.
• Source
• Department of Justice
• Isabel Waller )
• Justus Thompson )
• Division V — Economic Development Authority
• Description and Background
• Division V eliminates the Department of Cultural Affairs (DCA) and transfers responsibilities of
• the DCA to the Iowa Economic Development Authority (IEDA). The IEDA is responsible for
• ensuring that the economic development policies of the State are effectively and efficiently
• carried out. Division V expands these responsibilities by including the management of the
• State’s interests in the arts, history, and other cultural matters.
• Below is a list of programs, funds, and responsibilities that Division V transfers from the DCA to
• the IEDA:
• • The Iowa Cultural Trust and the Iowa Cultural Trust Fund.
• • Administration of a $520,000 standing appropriation that is split equally between operational
• support grants and the Community Cultural Grants Program established under Iowa Code
• section 303.3.
• • Fee-based art programs.
• • Statewide art programs.
• • The Film Office.
• • Surveys of existing art and cultural programs and activities.
• • Cultural Grant Programs.
• • Regional conferences and a statewide caucus on arts and cultural enhancement.
• • The Cultural and Entertainment District Certification Program.
• • The Iowa Great Places Program and the Iowa Great Places Program Fund.
• • The Culture, History, and Arts Team Program.
• • Historical Preservation Districts.
• • The Iowa Arts Council.
• • The Historic Property Rehabilitation Tax Exemption under Iowa Code section 427.16.
• • The powers previously held by the Arts Division Administrator under Iowa Code section
• 303.88.
• • Archeological site surveys relating to rural electric cooperatives and municipal utilities with
• historic properties.
• Division V eliminates the DCA Director position as well as the Administrative Division of the
• DCA. The Director of the IEDA will also be the Director of the Iowa Finance Authority (IFA) and
• will serve at the pleasure of the Governor, subject to confirmation by the Senate.
• Division V requires the State Historic Preservation Officer to conduct historical preservation
• activities pursuant to federal and State requirements. Proposals for areas of historical
• significance are submitted to the State Historic Preservation Officer rather than the Historical
• Division.
• Assumptions and Fiscal Impact
• The IEDA estimates that Division V would result in the elimination of 7.0 vacant, funded FTE
• positions and would decrease costs to the IEDA by approximately $496,000. Of this amount,
• $300,000 is from the General Fund and the remaining $196,000 is from other funding sources.
• Source
• Iowa Economic Development Authority
• Evan Johnson )
• Molly Kilker )
• Division VI — Economic Development Authority Partner State Program
• Description and Background
• Division VI formalizes the establishment of the Partner State Program administered by the Iowa
• Economic Development Authority (IEDA). The purpose of the Program is to establish and
• maintain relationships between the State and foreign countries and political subdivisions to
• facilitate mutually beneficial activities.
• Division VI also creates the Partner State Program Fund, which consists of moneys
• appropriated to the Fund or other moneys obtained by the IEDA for placement in the Fund.
• Moneys remaining in the Fund at the close of a fiscal year do not revert to the General Fund.
• The Partner State Program, currently Iowa Sister States, is funded through donations and
• allocations from the IEDA Economic Development appropriation. The mission of Iowa Sister
• States is to build sustainable international partnerships that connect Iowans to the world
• community. Current Sister States include the following:
• • Cherkasy Oblast, Ukraine
• • Hebei Province, China
• • Kosovo
• • Taiwan
• • Veneto Region, Italy
• • Yamanashi Prefecture, Japan
• • Yucatán, Mexico
• Division VI is effective upon enactment and applies to the above listed agreements entered into
• before the effective date of Division VI.
• Assumptions and Fiscal Impact
• Division VI is estimated to have no fiscal impact to the State.
• Source
• Iowa Economic Development Authority
• Evan Johnson )
• Molly Kilker )
• Division VII — Public Employment Relations Board
• Description and Background
• Division VII makes the following changes:
• • Modifies the method of compensation for Public Employment Relations Board (PERB) board
• members from a salary to a per diem payment and from full-time employment to part-time
• employment.
• • Removes from the PERB’s responsibility the preparation of legal briefs and presentation of
• oral arguments in court for cases affecting the PERB.
• • Removes the requirement that PERB board members be selected with consideration of their
• knowledge, ability, and experience in labor management relations.
• • Creates the PERB Executive Director position, which is appointed by the Governor and
• confirmed by the Senate. The Executive Director’s salary is set by the Governor within the
• applicable salary range established by the General Assembly.
• • Requires the PERB to meet at least quarterly and at the call of the chairperson.
• • Allows the PERB to delegate its powers and duties to the Executive Director or other PERB
• employees.
• • Provides that judicial review of agency action by the PERB is not subject to administrative
• rules.