1
HF 2686 – State Government Reorganization, Code Changes (LSB5333HZ)
Staff Contacts: Austin Brinks (515.725.2200) austin.brinks@legis.iowa.gov
Maria Wagenhofer (515.281.5270) maria.wagenhofer@legis.iowa.gov
Xavier Leonard (515.725.0509) xavier.leonard@legis.iowa.gov
Fiscal Note Version – New
House File 2686 is composed of 15 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.
Fiscal Note
Fiscal Services Division 2
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.
Assumptions and Fiscal Impact
As of April 3, 2024, the balance of the CRRF is approximately $4.4 million. Any funds that
remain in the CRRF will be transferred to the LRF at the end of FY 2024.
Division XII — State Salaries, Appointed State Officers
Description and Background
Division XII relates to the salaries of appointed State officials. 2023 Iowa Acts, chapter 19
(State Government Reorganization Act), established salary ranges four through seven for
various State officials. Figure 1 includes the salary ranges and minimum and maximum salary
amounts for each salary range, as set in 2023.
Figure 1 — Salary Ranges Set in 2023
Division XII instead provides for three salary ranges that are to be paid in a range set in
accordance with the specified pay grade of the pay plans published by the Department of
Administrative Services. Figure 2 includes the salary ranges established under Division XII
and the current minimum and maximum salary amounts for those pay grades.
Figure 2 — New Salary Ranges Under Division XII
Salary RangeMinimum Maximum
4 63,690$ 97,460$
5 73,250 112,070
6 84,240 128,890
7 100,840 154,300 Salary Range Pay Grade Minimum Maximum
1 32 65,395$ 101,150$
2 38 93,288 132,829
3 43 118,082 167,898 3
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.
Division XV — Department of Management, Justice Information
Description and Background
Division XV relates to the transfer of the Criminal and Juvenile Justice Planning (CJJP) research
staff from the HHS to the Department of Management (DOM). The Bill requires the DOM to
maintain a Statewide Integrated Justice Information System. The Bill also transfers the
responsibility of maintaining the Iowa Statistical Analysis Center, the Iowa Correctional Policy
Project, and the Multiagency Information System for Juveniles from the HHS to the DOM. The
Bill requires the Multiagency Information System for Juveniles to also include adults who have
been charged with a criminal offense in the court system.
The DOM and the HHS entered into a Memorandum of Understanding (MOU) on January 5,
2024, to coordinate the transition of CJJP staff from the HHS to the DOM. The MOU states that Position Title
Salary Range
Under Current
Law
Salary
Range Under
HF 2686
Chairperson and Members of the Employment Appeal Board of the DIAL 4 1
Director of the Iowa Civil Rights Commission 4 2
Director of the Department for the Blind 4 1
Executive Director of the Ethics and Campaign Disclosure Board 4 1
Board of Parole Chairperson, Vice Chairperson, and Members 4 1
Executive Director of the Iowa Public Information Board 4 1
State Public Defender 5 3
Labor Commissioner (Workforce Development) 5 3
Workers' Compensation Commissioner (Workforce Development) 5 2
Director of the Iowa Law Enforcement Academy 5 2
Executive Director of the Public Employment Relations Board 5 *
Superintendent of Banking of the Department of Insurance and Financial Services 6 3
Superintendent of Credit Unions of the Department of Insurance and Financial Services6 3
Consumer Advocate 6 2
Chairperson and Members of the Utilities Board 6 3
Administrator of the Public Broadcasting Division of the Department of Education 7 2
Executive Director of the Iowa Telecommunications and Technology Commission (ICN) 7 3
Executive Director of the State Board of Regents 7 3
State Court Administrator 7 3
Lottery Administrator of the Department of Revenue 7 3
*The salary of the Executive Director of the Public Employment Relations Board is not set within a salary range under HF 2686.
Instead, under the Bill, the Governor sets the salary of the Executive Director. 4
the DOM will charge the HHS monthly in arrears for the cost of all funded positions and filled
contractor roles, including training, travel, office space, equipment, and other related expenses.
In FY 2024, the HHS was appropriated $1.2 million and 10.7 full-time equivalent (FTE) positions
from the General Fund for CJJP research staff.
Assumptions and Fiscal Impact
Based on FY 2024 funding for CJJP, it is assumed the fiscal impact of Division XV is
approximately $1.2 million and 10.7 FTE positions for CJJP research staff, which will be
appropriated in FY 2025 to the DOM Department Operations instead of the HHS.
Sources
Department of Management
Legislative Services Agency
/s/ Jennifer Acton
April 8, 2024
Doc ID 1448660
The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in developing this
fiscal note is available from the Fiscal Services Division of the Legislative Services Agency upon request.
www.legis.iowa.gov