Relating to the organization, structure, and functions of state and local governments, providing for salaries of certain state officers, making statutory corrections, resolving inconsistencies, removing ambiguities, and including effective date provisions

House File 2686 is composed of 14 divisions. The Bill relates to the organization, structure, and functions of State and local government.

Divisions with No Fiscal Impact

Division I — Removes the requirement for the Department of Natural Resources (DNR) to provide permanent housing for certain children from the State Training School. Division III — Provides for changes to the Iowa Code for various functions of the Department of Transportation (DOT).

Division IV — Provides for changes to the Iowa Code for various functions of the Department of Education (DE).

Division V — Amends, repeals, and transfers various provisions relating to the Department of Corrections (DOC) and Judicial District Departments of Correctional Services. Division VI — Provides for changes to the Iowa Code for various references and functions of the Iowa Department of Revenue (IDR) and Iowa Lottery Division of the IDR. Division VII — Adds the Supplemental Nutrition Assistance Program (SNAP) to the list of programs administered by the Iowa Department of Workforce Development (IWD) and requires the IWD to jointly implement adult education and literacy programs with community colleges. Division VIII — Removes the requirement that the Director of the Office of Drug Control Policy submit an annual report to the Governor and General Assembly, and updates various references in the Iowa Code.

Division IX — Allows the Iowa Economic Development Authority (IEDA) and the Iowa Finance Authority (IFA) to include any other report that they are required to submit in the annual reports they are required to submit in Iowa Code sections 15.107B and 16.7, respectively. Division X — Removes the requirement for the IEDA to establish and administer certain internship programs for Iowa students and requires the IWD to establish and administer a similar program.

Division XI — Amends various provisions relating to the duties and authority of the Department of Health and Human Services (HHS) and the Council on Health and Human Services. Division XIII — Removes language requiring the Office for State-Federal Relations to be located in Washington, D.C., and instead provides that the office be attached to the Office of the Governor.

Division XIV — Provides changes for various duties and functions of the Department of Administrative Services (DAS) in regard to State historical sites.

Division II — Department of Inspections, Appeals, and Licensing

Description and Background

Division II provides for changes to the Iowa Code for various functions of the Department of Inspections, Appeals, and Licensing (DIAL). Division II repeals the Contractor Registration Revolving Fund (CRRF), redirects fees that were paid into the CRRF into the Licensing and Regulation Fund (LRF), and transfers funds that remain in the CRRF to the LRF at the end of FY 2024. The Division also allows licensees to apply continuing education (CE) credits in excess of the requirements for a renewal period to the CE requirements for the next renewal period, not to exceed 50.0% of the CE requirements for a renewal period. The Division permits licensing boards to adopt administrative rules for the implementation and restriction of CE credits.

Assumptions and Fiscal Impact

As of April 22, 2024, the balance of the CRRF is approximately $4.5 million. Any funds that remain in the CRRF will be transferred to the LRF at the end of FY 2024. Division XII — State Salaries, Appointed State Officers

Description and Background

Division XII relates to the salaries of appointed State officials. 2023 Iowa Acts, chapter 19 (State Government Reorganization Act), established salary ranges four through seven for various State officials. Figure 1 includes the salary ranges and minimum and maximum salary amounts for each salary range, as set in 2023.

Figure 1 — Salary Ranges Set in 2023 Division XII instead provides for three salary ranges that are to be paid in a range set in accordance with the specified pay grade of the pay plans published by the Department of Administrative Services. Figure 2 includes the salary ranges established under Division XII and the current minimum and maximum salary amounts for those pay grades. Figure 2 — New Salary Ranges Under Division XIISalary Range Minimum Maximum 4 63,690$ 97,460$ 5 73,250 112,070 6 84,240 128,890 7 100,840 154,300Salary Range Pay Grade Minimum Maximum 1 32 65,395$ 101,150$ 2 38 93,288 132,829 3 43 118,082 167,898 Figure 3 includes the changes to the salary range for current positions established under 2023 Iowa Acts, chapter 19, compared to the salary ranges established in Division XII. Figure 3 — Changes to Salary Ranges Under Division XII Unless the Bill specifies otherwise, Division XII allows the Governor to establish the salary for the various appointed State officials within their specified salary range. Division XII takes effect June 21, 2024 (first pay period of FY 2025).

Assumptions and Fiscal Impact

There may be a fiscal impact for the agency if the salary of the appointed State officer is set above the current salary range maximum or below the current salary range minimum. However, any potential fiscal impact as a result of these changes cannot be determined at this time.

Sources

• Department of Management
• Legislative Services Agency