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SF 514 – State Government Alignment (LSB2111SV.2)
Staff Contacts: Austin Brinks (515.725.2200) austin.brinks@legis.iowa.gov
Maria Wagenhofer (515.281.5270) maria.wagenhofer@legis.iowa.gov
Ron Robinson (515.281.6256) ron.robinson@legis.iowa.gov
Fiscal Note Version – Final Action
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.
Fiscal Note
Fiscal Services Division 2
• 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. 3
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
Staff Contacts
Christopher Ubben (515.725.0134) chris.ubben@legis.iowa.gov
Eric Richardson (515.281.6767) eric.richardson@legis.iowa.gov
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
Staff Contacts
Anthony Arellano (515.281.6764) anthony.arellano@legis.iowa.gov
Xavier Leonard (515.725.0509) xavier.leonard@legis.iowa.gov
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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. 5
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
Staff Contacts
Anthony Arellano (515.281.6764) anthony.arellano@legis.iowa.gov
Xavier Leonard (515.725.0509) xavier.leonard@legis.iowa.gov
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.
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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
Staff Contacts
Isabel Waller (515.281.6561) isabel.waller@legis.iowa.gov
Justus Thompson (515.725.2249) justus.thompson@legis.iowa.gov
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.
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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
Staff Contacts
Evan Johnson (515.281.6301) evan.johnson@legis.iowa.gov
Molly Kilker (515.725.1286) molly.kilker@legis.iowa.gov
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
Staff Contacts
Evan Johnson (515.281.6301) evan.johnson@legis.iowa.gov
Molly Kilker (515.725.1286) molly.kilker@legis.iowa.gov
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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.
• Removes language specifying that appeals for bargaining unit determination orders are
subject to administrative rule.
• Provides that, in a petition for judicial review of a PERB decision in a contested case, the
opposing party is named the respondent instead of the PERB.
The PERB is composed of three board member positions, one of which is currently vacant. The
board members are placed in salary range 4 ($63,690 to $97,460). No more than two board
members may be of the same political affiliation, and no board member may engage in political
activity while holding office. The PERB’s mission is to promote harmonious and cooperative
relationships between government and its employees without disruption of public services, via
the expert and timely services of a neutral agency.
Assumptions and Fiscal Impact
• Per diem applies to days when the PERB is meeting and not to preparation for hearings.
• The Executive Director position is in salary range 5 ($73,250 to $112,070).
• Per diem will be paid to three board members.
According to the PERB, Division VII is estimated to decrease total costs by $120,000. This is
the result of an increase in costs of $157,000 for an Executive Director as well as a cost
reduction of $277,000 from moving PERB board members from full-time to part-time
employment.
Source
Public Employment Relations Board
Staff Contacts
Evan Johnson (515.281.6301) evan.johnson@legis.iowa.gov
Molly Kilker (515.725.1286) molly.kilker@legis.iowa.gov
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Division VIII — Department of Homeland Security and Emergency Management
Background and Description
Division VIII requires the Department of Homeland Security and Emergency Management
(HSEMD) to administer the Disaster Aid Individual Assistance Grant Fund and the Disaster
Case Management Grant Fund. The name of the Disaster Case Management Grant Fund is
changed to the Disaster Case Advocacy Grant Fund. Division VIII also provides that the
Director of the HSEMD will be subject to confirmation by the Senate and is to serve at the
pleasure of the Governor.
Under current law, the Department of Human Services administers the Disaster Aid Individual
Assistance Grant Fund and the Disaster Case Management Grant Fund. The grant funds are
used to establish the Disaster Case Management Program and the Iowa Disaster Aid Individual
Assistance Grant Program.
Assumptions and Fiscal Impact
Due to increased workload, the HSEMD will require 1.0 additional FTE position to administer the
Disaster Case Management Program and the Iowa Disaster Aid Individual Assistance Grant
Program as they move from the Department of Human Services to the HSEMD. The HSEMD
estimates this transfer will cost $150,000 per year and require 1.0 additional FTE position. The
HSEMD is funded through the General Fund.
Source
Department of Homeland Security and Emergency Management
Staff Contacts
Isabel Waller (515.281.6561) isabel.waller@legis.iowa.gov
Justus Thompson (515.725.2249) justus.thompson@legis.iowa.gov
Division IX — Department of Veterans Affairs
Description and Background
Division IX makes definitional changes wherein “Director” and “Executive Director” become
“Commandant” and certain duties assigned to the Commandant of the Commission of Veterans
Affairs are now assigned to the Department of Veterans Affairs. The Division consolidates the
powers and duties of the Executive Director of the Department of Veterans Affairs with the
powers and duties of the Commandant of the Iowa Veterans Home into the Commandant of the
Department of Veterans Affairs. The Division further consolidates and redistributes
responsibilities of the newly established Commandant of Veterans Affairs with the Commission
of Veterans Affairs. This consolidation of powers and responsibilities eliminates 3.0 currently
vacant, funded FTE positions.
Assumptions and Fiscal Impact
Division IX eliminates 3.0 currently vacant, funded FTE positions and would decrease General
Fund costs by approximately $193,000.
Sources
Legislative Services Agency
Department of Veteran’s Affairs
Staff Contact
Christopher Ubben (515.725.0134) chris.ubben@legis.iowa.gov
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Division X — Office of Drug Control Policy
Description and Background
Division X transfers the Governor’s Office of Drug Control Policy to the Department of Public
Safety (DPS). Under Division X, administrative support services are required to be provided to
the Governor’s Office of Drug Control Policy by the DPS; the Director of the Governor’s Office of
Drug Control Policy will be appointed by the Commissioner of the DPS; and the salary of the
Director of the Governor’s Office of Drug Control Policy is no longer fixed by the Governor.
Currently, the Governor’s Office of Drug Control Policy is an independent office. The Director of
the Governor’s Office of Drug Control Policy is appointed by the Governor, is confirmed by the
Senate, and serves at the pleasure of the Governor. Additionally, the salary of the Director of
the Governor’s Office of Drug Control Policy is currently set by the Governor.
Assumptions and Fiscal Impact
Division X is estimated to have no fiscal impact to the State.
Source
Governor’s Office of Drug Control Policy
Staff Contacts
Anthony Arellano (515.281.6764) anthony.arellano@legis.iowa.gov
Xavier Leonard (515.725.0509) xavier.leonard@legis.iowa.gov
Division XI — Department of Workforce Development
Description and Background
Division XI moves the following programs, along with associated funds and standing
appropriations, to the Iowa Department of Workforce Development (IWD):
• The Statewide Work-Based Learning Intermediary Network Program from the Department of
Education.
• The Industrial New Jobs Training (260E) Program from the Iowa Economic Development
Authority (IEDA).
• The Iowa Jobs Training (260F) Program from the IEDA.
• The Workforce Development Fund Program from the IEDA.
• The Accelerated Career Education (260G) Program from the IEDA.
• The Older American Community Service Employment Program from the Department on
Aging.
• Vocational Rehabilitation Services from the Department of Education.
• The Apprenticeship Training Program from the IEDA.
• The Future Ready Iowa Registered Apprenticeship Development Program from the IEDA.
• The Future Ready Iowa Expanded Registered Apprenticeship Opportunities Program from
the IEDA.
• Employment Agencies from the Labor Services Division of the IWD.
• Adult Education and Literacy Programs from the Department of Education.
Division XI also makes the following changes:
• Allows the IWD to use moneys for the Pathways for Academic Career and Employment
Program to support a regional industry sector partnership.
• Removes language allowing funds in the Workforce Development Fund to be used for
administration costs.
• Removes the Labor Services Division and the Division of Workers’ Compensation from the
IWD. 11
• Requires reports and records previously submitted to the Division of Labor Services under
Iowa Code section 91.12 to be submitted to the IWD.
Assumptions and Fiscal Impact
According to the IWD, Division XI is estimated to decrease costs by approximately $4.2 million
per year and will eliminate 63.0 funded FTE positions and 4.0 unfunded FTE positions. The
IWD has not identified whether these positions are filled or unfilled. The decreased costs are
broken out as follows:
• $2.9 million and 39.0 FTE positions from the IWD.
• $1.2 million and 25.0 FTE positions from Vocational Rehabilitation Services.
• $72,000 and 3.0 FTE positions from the 260E, 260F, and 260G Programs as well as the
Science, Technology, Engineering, and Math (STEM) Internship Program.
Source
Iowa Workforce Development
Staff Contacts
Evan Johnson (515.281.6301) evan.johnson@legis.iowa.gov
Molly Kilker (515.725.1286) molly.kilker@legis.iowa.gov
Division XII — Department of Revenue
Description and Background
Division XII transfers the Iowa Lottery Authority and the duties of the Alcoholic Beverages
Division (ABD) of the Department of Commerce to the Department of Revenue (IDR). The
Division also defines terms.
Currently, the Iowa Lottery Authority is an independent entity created in Iowa Code chapter
99G. Division XII transfers the authority for operating the Iowa Lottery to the IDR and the
Director of the IDR and creates an Iowa Lottery Division of the IDR. The position of Chief
Executive Officer (CEO) of the Iowa Lottery is replaced by a Lottery Administrator, who will
report directly to the Director of the IDR and will serve at the pleasure of the Governor, subject
to confirmation by the Senate.
Division XII modifies the duties of both the Lottery Administrator and the Lottery Board, including
transferring the approval of the Lottery budget from the Lottery Board to the Director of the IDR.
Duties of the Lottery Board regarding administration of the Lottery and the adoption of
administrative rules are transferred to the IDR.
Under Division XII, the compensation of the Lottery Administrator is set by the Governor. The
power of the Lottery CEO and Board to determine the number and duties of FTE positions of the
Lottery Authority is removed. Additionally, Division XII removes abilities of the Lottery Authority
relating to acquiring real property, entering into contracts, purchasing meals for meeting
attendees, and other powers generally exercised by private businesses.
Finally, Division XII requires the Iowa Lottery Division to use the services of the Department of
Administrative Services during competitive bidding procurement contracts.
In addition to transferring the ABD to the IDR, Division XII transfers the Alcoholic Beverages
Commission’s duties, namely to advise, review, and affirm, reverse, or amend actions of the
ABD Administrator, to apply to the IDR and the IDR Director. Division XII eliminates the position
and transfers the duties of the Administrator of the ABD to the Director of the IDR or the
Director’s designee. 12
Assumptions and Fiscal Impact
It is assumed that all existing FTE positions in the ABD and the Iowa Lottery Authority will be
transferred to the IDR. The ABD, the Iowa Lottery Authority, and the IDR have stated that
Division XII is expected to have no fiscal impact to the State of Iowa.
Sources
Alcoholic Beverages Division, Department of Commerce
Department of Revenue
Iowa Lottery Authority
Legislative Services Agency
Staff Contacts
Anthony Arellano (515.281.6764) anthony.arellano@legis.iowa.gov
Xavier Leonard (515.725.0509) xavier.leonard@legis.iowa.gov
Division XIII — Department for the Blind
Description and Background
The Iowa Department for the Blind provides services to Iowans who are blind or visually
impaired through the Department’s three major service areas: vocational rehabilitation (VR),
independent living, and the Library for the Blind and Print Disabled. The Department’s Director
is currently selected by the three members of the Commission for the Blind, who are appointed
by the Governor.
Division XIII removes the appointment function of the Commission and grants the power to
appoint the Director to the Governor, subject to confirmation by the Senate. The Director will
serve at the pleasure of the Governor. Division XIII specifies that the Governor will appoint a
Director of the Department for the Blind on or before July 1, 2023, to be effective July 1, 2023.
Division XIII takes effect upon enactment.
Assumptions and Fiscal Impact
Division XIII has no fiscal impact to the State of Iowa.
Source
Department for the Blind
Staff Contacts
Michael Peters (515.281.6934) michael.peters@legis.iowa.gov
Simon Sheaff (515.281.4611) simon.sheaff@legis.iowa.gov
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Division XIV — Department of Education
Description and Background
Division XIV transfers a number of agencies and responsibilities to the Department of Education
(DE).
Division XIV transfers the Iowa School for the Deaf (ISD) from the Board of Regents to the DE.
The Bill also removes the Iowa Braille and Sight Saving School (IBSSS) and replaces it with
Iowa Educational Services for the Blind and Visually Impaired (IESBVI). The IBSSS has not
operated as a traditional school for several years and instead collaborates with the Department
for the Blind, the DE, and Area Education Agencies (AEAs) to provide educational programs for
blind and visually impaired Iowans. The IESBVI would continue to administer these programs.
Division XIV moves the Science, Technology, Engineering, and Mathematics Collaborative
Initiative (STEM Initiative), currently administered by the University of Northern Iowa (UNI), to a
new division in the DE known as the Innovation Division — Science, Technology, Engineering,
and Mathematics Collaborative. The STEM Initiative provides students working in STEM fields
with internships that are intended to lead to a permanent position with Iowa employers. Division
XIV creates the office of the Innovation Division Administrator, who oversees the activities of the
Division.
Division XIV also creates a new Higher Education Division within the DE and creates the
position of Higher Education Division Administrator. Division XIV tasks the Higher Education
Division and the Administrator with overseeing:
• The Community Colleges and Post-Secondary Readiness Bureau, which Division XIV
establishes as a new Bureau within the DE. A Bureau Chief position, which is already
funded in the DE, is established for the Community Colleges and Post-Secondary
Readiness Bureau and is charged with overseeing the career and technical education (CTE)
activities of the DE. CTE programming in Iowa is primarily funded under the federal
Strengthening Career and Technical Education for the 21st Century Act. The CTE
Administration State appropriation serves as a match to draw federal funds. The Perkins
Grant includes an administrative allowance that, along with this appropriation, is used by the
DE for staffing and other administrative costs.
• The College Student Aid Commission (CSAC), which Division XIV establishes as a bureau
of the Higher Education Division rather than a standalone agency, is responsible for
overseeing State programs that provide scholarships, grants, and loan forgiveness to
students pursuing higher education; help high school students prepare for higher education;
and ensure that postsecondary institutions in Iowa that have students qualifying for State
financial aid meet established standards.
• The Board of Educational Examiners (BOEE), which Division XIV establishes as a bureau of
the Higher Education Division rather than a standalone agency, establishes standards for
educational practitioners and is charged with the overall responsibility of regulating the
licensure standards for teachers, administrators, paraeducators, and coaches. The BOEE
also investigates ethics complaints and monitors compliance of licensees with orders issued
by the BOEE.
• The Community Colleges Bureau, which Division XIV changes from a division of the DE to a
bureau of the Higher Education Division. A Bureau Chief position, which is already funded
in the DE, is established for the Community Colleges Bureau. Each community college is
overseen by a publicly elected board of trustees. The DE’s Division of Community Colleges
currently accredits and provides statewide oversight of the colleges.
14
Assumptions and Fiscal Impact
• The appropriations for the CSAC, the STEM Initiative, the Division of Community Colleges,
CTE Administration, the IBSSS, and the ISD will move from their current alignment to the
new alignment.
• The current chief administrative positions for the CSAC, the Division of Community
Colleges, the BOEE, and the ISD will be fully replaced by the new bureau chief offices
created. The current chief administrative position of the CTE Bureau will be replaced by the
chief administrative position of the Community Colleges and Post-Secondary Readiness
Bureau. The salaries of these positions will remain unchanged.
• The current chief administrative position for the Division of Community Colleges and
Workforce Preparation will assume the duties of the chief administrative position for the
Division of Higher Education.
Division XIV has no fiscal impact to the State of Iowa.
Sources
Board of Regents
College Student Aid Commission
Department of Education
Department for the Blind
Staff Contacts
Michael Peters (515.281.6934) michael.peters@legis.iowa.gov
Simon Sheaff (515.281.4611) simon.sheaff@legis.iowa.gov
Division XV — Commerce
Description and Background
Division XV renames the Department of Commerce to the Department of Insurance and
Financial Services, which includes the Iowa Division of Banking (IDOB), the Iowa Division of
Credit Unions (IDCU), and the Iowa Insurance Division (IID). The Alcoholic Beverages Division
is transferred from the Department of Commerce to the Department of Revenue, as outlined in
Division XII of the Bill.
In addition, Division XV makes the following changes:
• Provides that the Office of the Consumer Advocate is administratively supported by the Iowa
Utilities Board.
• Renames the Department of Commerce Revolving Fund to the Commerce Revolving Fund.
• Establishes the Utilities Division of the Department of Commerce as a separate agency
while establishing that it will continue to participate in the Commerce Revolving Fund.
• Makes the Insurance Commissioner the Director of the Department of Insurance and
Financial Services (DIFS).
• Establishes that the Superintendent of Banking and the Superintendent of Credit Unions will
report to the Insurance Commissioner and will serve at the pleasure of the Governor.
• Establishes that the Governor will set the salary for the Insurance Commissioner, the
Superintendent of Banking, and the Superintendent of Credit Unions. The salaries of each
Superintendent will be within salary range 6, while the salary of the Commissioner will not
be included in a salary range, as outlined in Division XVIII.
Assumptions and Fiscal Impact
Division XV is estimated to have no fiscal impact to the State of Iowa.
15
Sources
Department of Commerce
Legislative Services Agency
Staff Contacts
Anthony Arellano (515.281.6764) anthony.arellano@legis.iowa.gov
Xavier Leonard (515.725.0509) xavier.leonard@legis.iowa.gov
Division XVI — Department of Corrections
Description and Background
Division XVI moves Community-Based Corrections (CBC) under the control of the Department
of Corrections (DOC). Division XVI also makes the following changes:
• Transfers CBC programs under the direction of the DOC.
• Provides that the Director of the DOC appoints the director for each CBC district
departments.
• Establishes that all employees of the CBC district departments are employees of the DOC.
• Changes each CBC’s board of directors from a policymaking board to an advisory-only
board.
• Modifies the membership of the CBC district advisory boards.
• Transfers certain duties from the district advisory boards to the district directors.
CBC is an alternative to incarcerating individuals convicted of criminal offenses. This includes
individuals on pretrial release, probation, or parole who reside in the community under the
supervision of a CBC district department and participate in treatment programs. Approximately
80.0% of offenders in the State corrections system are supervised by the CBC district
departments, while approximately 20.0% are incarcerated in the State prison system.
Under Iowa Code chapter 905, there are eight CBC district departments. Each is a separate
agency under the direction of a board of directors and is administered by a director employed by
the board. The CBC staff members are considered State employees only for the purposes of
collective bargaining and tort liability, and they are considered employees of the district
department for administrative purposes.
Currently, each CBC board sets policy and oversees program operations. The DOC Central
Office has regulatory responsibilities for CBC programs, including statewide planning, budget
oversight, establishment of program guidelines, and development of performance measures.
The CBC district departments are funded through the General Fund and local fees. The
General Assembly appropriates funding to the DOC and allocates funds to each CBC district
department. The local fees consist primarily of rent paid by clients in the residential facilities
and supervision fees paid by clients.
Assumptions and Fiscal Impact
• The CBC district departments receive approximately 80.0% of funding through the General
Fund and 20.0% through local fees. Under Division XVI, this local fee revenue will be
received by the State rather than the CBC district departments, but the local fee revenue will
be used for the same purpose.
• Division XVI does not change the funding mechanism for the CBC district departments.
• There will be no change in salaries for CBC employees who will become DOC employees
under Division XVI. Additionally, Iowa Public Employees’ Retirement System (IPERS)
status will remain the same for these employees. 16
The DOC reports that Division XVI will have no fiscal impact related to personnel. The DOC
reports that there may be annual operational cost reductions due to applying consistent
supervision practices in the CBC district departments; however, this cannot currently be
determined due to lack of data.
Source
Department of Corrections
Staff Contacts
Isabel Waller (515.281.6561) isabel.waller@legis.iowa.gov
Justus Thompson (515.725.2249) justus.thompson@legis.iowa.gov
Division XVII — Board of Parole
Description and Background
Division XVII relates to the Board of Parole (BOP). It provides that all five members of the BOP
are full-time, salaried members and removes the three alternate BOP member positions.
Under Iowa Code chapter 904A, the BOP consists of five regular members. The chairperson
and vice chairperson are full-time, salaried members. The other three members are part-time
and paid per diem. Additionally, there are three alternate members who substitute for Board
members who are disqualified or become unavailable for any other reason for hearings.
Assumptions
• The three regular part-time members and the three alternate members of the Board receive
a per diem of $331.68 for each day worked.
• The salary range of the three regular part-time Board members who will become full-time is
approximately $64,000 to $97,000.
• The Board will no longer pay a per diem for the three alternate Board members.
• Moving the three regular part-time Board members to full-time, salaried positions with
benefits will increase BOP costs.
Fiscal Impact
The changes to the structure of the BOP are estimated to increase costs by approximately
$200,000 annually. This increase comprises a reduction in costs for removing the per diem for
alternate Board members and an increase in costs by paying the three regular Board members
a full-time salary and benefits instead of a per diem. The BOP is funded through the General
Fund.
Sources
Board of Parole
Department of Corrections
Staff Contacts
Isabel Waller (515.281.6561) isabel.waller@legis.iowa.gov
Justus Thompson (515.725.2249) justus.thompson@legis.iowa.gov
17
Division XVIII — Salaries of Appointed State Officers
Description and Background
Division XVIII relates to the salaries of appointed State officials. 2008 Iowa Acts, chapter 1191
(FY 2009 Standing Appropriations Act), established salary ranges 2 through 7 for State officials.
Table 1 below includes the minimum and maximum salary amounts for each salary range, as
established in HF 2700 (FY 2009 Standing Appropriations Act).
Table 1 — Salary Ranges Set in 2008
Division XVIII eliminates salary ranges 2 and 3. The State positions currently within ranges 2
and 3 no longer exist in their current form under the Bill. Division XVIII maintains ranges 4
through 7, and the salary amount of those ranges remain the same. However, not all State
officials are placed in the same salary range as they were placed in HF 2700, and some State
officials are no longer assigned a salary range.
The salary ranges remain in effect until the General Assembly modifies the salary ranges. A
State official remains in the specified salary range until the General Assembly specifies
otherwise.
Table 2 includes the changes to the salary range for current positions established under 2008
Iowa Acts, chapter 1191, compared to the salary ranges established in Division XVIII.
Salary RangeMinimumMaximum
2 48,160$ 73,700$
3 55,380 84,750
4 63,690 97,460
5 73,250 112,070
6 84,240 128,890
7 100,840 154,300 18
Table 2 — Changes to Salary Ranges Under Division XVIII
Unless the Bill specifies otherwise, Division XVIII allows the Governor to establish the salary for
the various appointed State officials.
Division XVIII takes effect June 23, 2023 (first pay period of FY 2024).
Assumptions and Fiscal Impact
For agencies with directors that are no longer included within a salary range, there may be a
fiscal impact for the agency if the salary of the director is set above the current salary range
maximum or below the current salary range minimum. There may also be a fiscal impact if
there are changes to salaries for positions realigned under another agency that were previously
set within a salary range. However, any potential fiscal impact as a result of these changes
cannot be determined at this time. Current Position Title
Salary Range
Under 2008
Iowa Acts,
chapter 1191,
as amended
Salary
Range
Under
Division XVIII
Administrator of the Arts Division of the Department of Cultural Affairs 2 Not Included
Chairperson and two members of the Employment Appeal Board of the Department of Inspections and Appeals 3 4
Administrator of the Division of Criminal and Juvenile Justice Planning of the Department of Human Rights3 Not Included
Administrator of the Division of Community Action Agencies of the Department of Human Rights 3 Not Included
Director of the Department of Human Rights 4 Not Included
Director of the Iowa State Civil Rights Commission 4 4
Director of the Department for the Blind 4 4
Executive Director of the Ethics and Campaign Disclosure Board 4 4
Members of the Public Employment Relations Board 4 Not Included
Board of Parole Chairperson, Vice Chairperson, and members 4 4
Executive Director of the Iowa Public Information Board 4 4
Director of the Department of Homeland Security and Emergency Management 5 Not Included
State Public Defender 5 5
Drug Policy Coordinator 5 Not Included
Labor Commissioner (Workforce Development) 5 5
Workers' Compensation Commissioner (Workforce Development) 5 5
Director of the Department of Cultural Affairs 5 Not Included
Director of the Iowa Department on Aging 5 Not Included
Director of the Iowa Law Enforcement Academy 5 5
Executive Director of the College Student Aid Commission 5 Not Included
Executive Director of the Department of Veterans Affairs 5 Not Included
Administrator of the Historical Division of the Department of Cultural Affairs 5 Not Included
Superintendent of Banking (Department of Commerce) 6 6
Superintendent of Credit Unions (Department of Commerce) 6 6
Administrator of the Alcoholic Beverages Division (Department of Commerce) 6 Not Included
Director of the Department of Inspections and Appeals 6 Not Included
Commandant of the Veterans Home 6 Not Included
Commissioner of the Department of Public Safety 6 Not Included
Commissioner of Insurance (Department of Commerce) 6 Not Included
Executive Director of the Iowa Finance Authority 6 Not Included
Director of the Department of Natural Resources 6 Not Included
Consumer Advocate 6 6
Chairperson and members of the Utilities Board (Department of Commerce) 6 6
Executive Director of Iowa PBS 7 7
Director of the Department of Corrections 7 Not Included
Director of the Department of Education 7 Not Included
Director of the Department of Human Services 7 Not Included
Director of the Economic Development Authority 7 Not Included
Executive Director of the Iowa Telecommunications and Technology Commission (ICN) 7 7
Executive Director of the State Board of Regents 7 7
Director of the Department of Transportation 7 Not Included
Director of the Department of Workforce Development 7 Not Included
Director of the Department of Revenue 7 Not Included
Director of the Department of Public Health 7 Not Included
State Court Administrator 7 7
Director of the Department of Management 7 Not Included
Director of the Department of Administrative Services 7 Not Included
Executive Director of the Public Employment Relations Board (new under Bill) Not Included 5
Administrator of the Iowa Lottery Division of the Department of Revenue (new under Bill) Not Included 7 19
Source
Legislative Services Agency
Staff Contact
Maria Wagenhofer (515.281.5270) maria.wagenhofer@legis.iowa.gov
Division XIX — Boards and Commissions
Description and Background
Division XIX establishes a Boards and Commissions Review Committee to study the efficiency
and effectiveness of each board, council, commission, committee, or other similar entity of the
State that has been established by the Iowa Code. The Committee will include the following six
voting members:
• One staff member of the Governor’s Office who has been appointed by the Governor.
• The Administrative Rules Coordinator or a designee.
• The Director of the Department of Management (DOM) or a designee.
• The Director of the Department of Inspections, Appeals, and Licensing (DIAL) or a
designee.
• One assistant attorney general who has been recommended by the Attorney General and
appointed by the Governor.
• One member of the public who has been appointed by the Governor.
The Committee will also include the following four nonvoting members:
• One State representative appointed by the Speaker of the House.
• One State representative appointed by the Minority Leader of the House.
• One State senator appointed by the Majority Leader of the Senate.
• One State senator appointed by the Minority Leader of the Senate.
Division XIX requires the Committee to submit a report to the Governor and General Assembly
on its findings no later than September 30, 2023, and the Division is repealed January 1, 2024.
Assumptions and Fiscal Impact
Division XIX has no fiscal impact to the State of Iowa.
Source
Legislative Services Agency
Staff Contact
Austin Brinks (515.725.2200) austin.brinks@legis.iowa.gov
Division XX — Miscellaneous Provisions
Description and Background
Division XX includes a provision relating to irreconcilable amendments as well as transition
provisions. The Division provides that if an amendment in Division I of the Bill (Department of
Health and Human Services) is irreconcilable to an amendment that is made in the remainder of
the Bill, the amendment in the remainder of the Bill prevails. In addition, Division XX provides
transition provisions for administrative rules, legal obligations, personnel, funds, litigation,
boards and commissions, and signs and insignia.
Assumptions and Fiscal Impact
Division XX has no fiscal impact to the State of Iowa. 20
Source
Legislative Services Agency
Staff Contact
Austin Brinks (515.725.2200) austin.brinks@legis.iowa.gov
Appendix A
Table 3 shows a summary of fiscal impacts for each division.
Table 3 — Summary of Fiscal Impacts of SF 514
/s/ Jennifer Acton
May 16, 2023
Doc ID 1374023
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 Division FTE General FundFederal Funds Other Total
I - HHS
FTE Reduction -110.0 -2,000,000$ -4,400,000$ 0$ -6,400,000$
Elimination of State Auditor Fees 0.0 -96,000$ 0$ 0$ -96,000$
Elimination of State Board of Health0.0 -1,700 0 0 -1,700
Estimated Total -110.0 -2,097,700$ -4,400,000$ 0$ -6,497,700$
III - DIA
FTE Reduction -20.0 -162,000 -1,400,000 0 -1,562,000
V - IEDA/DCA
FTE Reduction -7.0 -300,000 0-196,000 -496,000
VII - Public Employment Relations Board
Executive Director -2.0 -120,000 -120,000
XI - Workeforce Development
FTE Reduction -67.0 -4,200,000 -4,200,000
XIV - Education
FTE Increase 1.0 144,000 144,000
XVII - Board of Parole
Restructuring 3.0 200,000 200,000
Totals -202.0 -6,535,700$ -5,800,000$ -196,000$ -12,531,700$
0
Estimated Identified Net Impact