House File 70

                                       HOUSE FILE       
                                       BY  EICHHORN


    Passed House, Date                Passed Senate,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act establishing a biennial appropriations process and
  2    providing effective and applicability dates.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 1293YH 80
  5 jp/sh/8

PAG LIN

  1  1    Section 1.  Section 2.12, unnumbered paragraph 4, Code
  1  2 2003, is amended to read as follows:
  1  3    There is appropriated out of any funds in the state
  1  4 treasury not otherwise appropriated such sums as may be
  1  5 necessary for the fiscal year biennium budgets of the
  1  6 legislative service bureau, the legislative fiscal bureau, the
  1  7 citizens' aide office and the computer support bureau for
  1  8 salaries, support, maintenance, and miscellaneous purposes to
  1  9 carry out their statutory responsibilities.  The legislative
  1 10 service bureau, the legislative fiscal bureau, the citizens'
  1 11 aide office, and the computer support bureau shall submit
  1 12 their proposed budgets for the two years of the fiscal
  1 13 biennium to the legislative council not later than September
  1 14 October 1 of each the year preceding the first regular session
  1 15 of a general assembly.  The legislative council shall review
  1 16 and approve the proposed budgets not later than December 1 of
  1 17 each the year preceding the first regular session of a general
  1 18 assembly.  The budget approved by the legislative council for
  1 19 each of its statutory legislative agencies shall be
  1 20 transmitted by the legislative council to the department of
  1 21 management on or before December 1 of each the year preceding
  1 22 the first regular session of a general assembly for the fiscal
  1 23 year beginning July 1 of the following year.  The department
  1 24 of management shall submit the approved budgets received from
  1 25 the legislative council to the governor for inclusion in the
  1 26 governor's proposed budget for the succeeding fiscal year
  1 27 biennium.  The approved budgets shall also be submitted to the
  1 28 chairpersons of the committees on appropriations.  The
  1 29 committees on appropriations may allocate from the funds
  1 30 appropriated by this section the funds contained in the
  1 31 approved budgets, or such other amounts as specified, pursuant
  1 32 to a concurrent resolution to be approved by both houses of
  1 33 the general assembly.  The director of revenue and finance
  1 34 shall issue warrants for salaries, support, maintenance, and
  1 35 miscellaneous purposes upon requisition by the administrative
  2  1 head of each statutory legislative agency.  If the legislative
  2  2 council elects to change the approved budget for a legislative
  2  3 agency for either or both years of a fiscal biennium prior to
  2  4 July 1, the legislative council shall transmit the amount of
  2  5 the budget revision to the department of management prior to
  2  6 July 1 of the affected fiscal year, however, if the general
  2  7 assembly approved the budget it cannot be changed except
  2  8 pursuant to a concurrent resolution approved by the general
  2  9 assembly.
  2 10    Sec. 2.  NEW SECTION.  2.12B  FISCAL BIENNIUM ==
  2 11 APPROPRIATIONS.
  2 12    1.  In the first year of each general assembly the general
  2 13 assembly shall enact appropriations for each fiscal year of
  2 14 the ensuing fiscal biennium.  An appropriation shall indicate
  2 15 the source from which the appropriation shall be paid.  An
  2 16 appropriation need not be in greater detail than to indicate
  2 17 the total appropriation to be made for both of the following:
  2 18    a.  Administration, operation, and maintenance of each
  2 19 department and establishment, as defined in section 8.2, for
  2 20 each fiscal year of a fiscal biennium.
  2 21    b.  The cost of land, public improvements, and other
  2 22 capital outlays for each department and establishment,
  2 23 itemized by specific projects or classes of projects of the
  2 24 same general character.
  2 25    2.  The general assembly may enact appropriation bills for
  2 26 the second year of a fiscal biennium providing for
  2 27 supplemental appropriations to or appropriation reductions
  2 28 from the previously enacted fiscal biennium budget.
  2 29    Sec. 3.  Section 8.6, subsection 2, Code 2003, is amended
  2 30 to read as follows:
  2 31    2.  REPORT OF STANDING APPROPRIATIONS.  To annually
  2 32 biennially prepare a separate report containing a complete
  2 33 list of all standing appropriations showing the amount of each
  2 34 appropriation and the purpose for which the appropriation is
  2 35 made and furnish a copy of the report to each member of the
  3  1 general assembly on or before the first day of each the first
  3  2 regular session of a new general assembly.
  3  3    Sec. 4.  Section 8.21, Code 2003, is amended to read as
  3  4 follows:
  3  5    8.21  BUDGET TRANSMITTED.
  3  6    1.  Not later than February 1 of the first regular session
  3  7 of each legislative session general assembly, the governor
  3  8 shall transmit to the legislature general assembly a document
  3  9 to be known as a budget, setting forth the governor's
  3 10 financial program for each of the fiscal years of the ensuing
  3 11 fiscal year biennium and having the character and scope set
  3 12 forth in sections 8.22 through 8.29.
  3 13    2.  If the governor is required to use a lesser amount in
  3 14 the budget process because of a later meeting of the state
  3 15 revenue estimating conference under section 8.22A, subsection
  3 16 3, the governor shall transmit recommendations for a budget in
  3 17 conformance with that requirement within fourteen days of the
  3 18 later meeting of the state revenue estimating conference.
  3 19    3.  If the governor is required under section 8.22A,
  3 20 subsection 3, and section 8.54, subsection 2, to use a
  3 21 different amount in the budget process for the second year of
  3 22 a fiscal biennium because the revenue estimating conference
  3 23 agrees to a different estimate for the second fiscal year than
  3 24 was used in the initial budget process for that fiscal year
  3 25 and the state general fund expenditure limitation for that
  3 26 fiscal year is readjusted, the governor shall transmit to the
  3 27 general assembly recommendations for revisions in revenue
  3 28 provisions and appropriations as necessary so that the budget
  3 29 for the second year of the fiscal biennium does not exceed the
  3 30 readjusted state general fund expenditure limitation.  The
  3 31 recommendations for revisions shall be transmitted not later
  3 32 than February 1 of the second regular session of the general
  3 33 assembly.
  3 34    Sec. 5.  Section 8.22, Code 2003, is amended to read as
  3 35 follows:
  4  1    8.22  NATURE AND CONTENTS OF BUDGET.
  4  2    The budget shall consist of four parts, the nature and
  4  3 contents of which shall be as follows:
  4  4                             PART I
  4  5    GOVERNOR'S BUDGET MESSAGE.  Part I shall consist of the
  4  6 governor's budget message, in which the governor shall set
  4  7 forth:
  4  8    1.  The governor's program for meeting all the expenditure
  4  9 needs of the government for the each of the fiscal years of
  4 10 the ensuing fiscal year biennium, indicating the classes of
  4 11 funds, general or special, from which appropriations are to be
  4 12 made and the means through which the expenditures shall be
  4 13 financed.
  4 14    The governor's program shall include a single budget
  4 15 request for all capital projects proposed by the governor.
  4 16 The request shall include but is not limited to the following:
  4 17    a.  The purpose and need for each capital project.
  4 18    b.  A priority listing of capital projects.
  4 19    c.  The costs of acquisition, lease, construction,
  4 20 renovation, or demolition of each capital project.
  4 21    d.  The identification of the means and source of funding
  4 22 of each capital project.
  4 23    e.  The estimated operating costs of each capital project
  4 24 after completion.
  4 25    f.  The estimated maintenance costs of each capital project
  4 26 after completion.
  4 27    g.  The consequences of delaying or abandoning each capital
  4 28 project.
  4 29    h.  Alternative approaches to meeting the purpose or need
  4 30 for each capital project.
  4 31    i.  Alternative financing mechanisms.
  4 32    j.  A cost=benefit analysis or economic impact of each
  4 33 capital project.
  4 34    2.  Financial statements giving in summary form:
  4 35    a.  The condition of the treasury at the end of the last
  5  1 completed fiscal year, the estimated condition of the treasury
  5  2 at the end of the year in progress, and the estimated
  5  3 condition of the treasury at the end of each of the following
  5  4 fiscal year fiscal years of the ensuing fiscal biennium if the
  5  5 governor's budget proposals are put into effect.
  5  6    b.  Statements showing the bonded indebtedness of the
  5  7 government, debt authorized and unissued, debt redemption and
  5  8 interest requirements, and condition of the sinking funds, if
  5  9 any.
  5 10    c.  A summary of appropriations recommended for each of the
  5 11 following fiscal year fiscal years of the ensuing fiscal
  5 12 biennium for each department and establishment and for the
  5 13 government as a whole, in comparison with the actual
  5 14 expenditures for the last completed fiscal year and the
  5 15 estimated expenditures for the year in progress.
  5 16    d.  A summary of the revenue, estimated to be received by
  5 17 the government during each of the fiscal years of the
  5 18 following ensuing fiscal year biennium, classified according
  5 19 to sources, in comparison with the actual revenue received by
  5 20 the government during the last completed fiscal year and
  5 21 estimated income during the year in progress.
  5 22    e.  A statement of federal funds received in the form of
  5 23 block or categorical grants which were not included in the
  5 24 governor's budget for the previous fiscal year biennium in
  5 25 progress and a statement of anticipated block grants and
  5 26 categorical grants for each of the fiscal years of the ensuing
  5 27 fiscal biennium.  The budget shall indicate how the federal
  5 28 funds will be used and the programs to which they will be
  5 29 allocated.  The amount of state funds required to implement
  5 30 the programs to which the federal funds will apply shall also
  5 31 be indicated.  The departments shall provide information to
  5 32 the director on the anticipated federal block grants and
  5 33 categorical grants to be received on or before November 1 of
  5 34 each year.  The director shall use this information to develop
  5 35 an annual update of the statement of federal funds received
  6  1 which shall be provided to the general assembly.
  6  2    f.  Other financial statements, data, and comments as in
  6  3 the governor's opinion are necessary or desirable in order to
  6  4 make known in all practicable detail the financial condition
  6  5 and operation of the government and the effect that each of
  6  6 the fiscal years of the biennial budget as proposed by the
  6  7 governor will have on the financial condition and operation.
  6  8    If the estimated revenues of the government for the ensuing
  6  9 fiscal year biennium as set forth in the budget on the basis
  6 10 of existing laws, plus the estimated amounts balances in the
  6 11 treasury at the close of the year fiscal biennium in progress,
  6 12 available for expenditure in the ensuing fiscal year biennium
  6 13 are less than the aggregate recommended appropriations for the
  6 14 ensuing fiscal year biennium as contained in the budget, the
  6 15 governor shall make recommendations to the legislature general
  6 16 assembly in respect to the manner in which the deficit shall
  6 17 be met, whether by an increase in the state tax or the
  6 18 imposition of new taxes, increased rates on existing taxes, or
  6 19 otherwise, and if the aggregate of the estimated revenues,
  6 20 plus estimated balances in the treasury, is greater than the
  6 21 recommended appropriations for each year of the ensuing fiscal
  6 22 year biennium, the governor shall make recommendations in
  6 23 reference to the application of the surplus to the reduction
  6 24 of debt or otherwise, to the reduction in taxation, or to such
  6 25 other action as in the governor's opinion is in the interest
  6 26 of the public welfare.
  6 27                             PART II
  6 28    RECOMMENDED APPROPRIATIONS.  Part II shall present in
  6 29 detail for each year of the ensuing fiscal year biennium the
  6 30 governor's recommendations for appropriations to meet the
  6 31 expenditure needs of the government from each general class of
  6 32 funds, in comparison with actual expenditures for each of the
  6 33 purposes during the last completed fiscal year and estimated
  6 34 expenditures for the year in progress, classified by
  6 35 departments and establishments and indicating for each the
  7  1 appropriations recommended for:
  7  2    1.  Meeting the cost of administration, operation, and
  7  3 maintenance of the departments and establishments.
  7  4    2.  Appropriations for meeting the cost of land, public
  7  5 improvements, and other capital outlays in connection with the
  7  6 departments and establishments.
  7  7    Each item of expenditure, actual or estimated, and
  7  8 appropriations recommended for administration, operation, and
  7  9 maintenance of each department or establishment shall be
  7 10 supported by detailed statements showing the actual and
  7 11 estimated expenditures and appropriations classified by
  7 12 objects according to a standard scheme of classification to be
  7 13 prescribed by the director.
  7 14                            PART III
  7 15    APPROPRIATION BILLS.  Part III shall include a draft or
  7 16 drafts of appropriation bills having for their purpose to give
  7 17 legal sanction to the appropriations recommended to be made in
  7 18 Parts I and II.  The appropriation bills shall indicate the
  7 19 funds, general or special, from which the appropriations shall
  7 20 be paid, but the appropriations need not be in greater detail
  7 21 than to indicate the total appropriation to be made for both
  7 22 of the following:
  7 23    1.  Administration, operation, and maintenance of each
  7 24 department and establishment for each year of the fiscal year
  7 25 biennium.
  7 26    2.  The cost of land, public improvements, and other
  7 27 capital outlays for each department and establishment,
  7 28 itemized by specific projects or classes of projects of the
  7 29 same general character.
  7 30    The governor may submit appropriation bills in the second
  7 31 year of a fiscal biennium providing for supplemental
  7 32 appropriations to or appropriation reductions from the
  7 33 previously enacted fiscal biennium budget.
  7 34                             PART IV
  7 35    STRATEGIC PLAN.  Part IV shall include an explanation that
  8  1 correlates the budget with the enterprise strategic plan
  8  2 adopted pursuant to section 8E.204.  The budget shall provide
  8  3 an explanation of appropriations recommended for the
  8  4 administration and maintenance of an agency as defined in
  8  5 section 8E.103 with the general evaluation of the agency in
  8  6 meeting enterprise strategic goals, including identifying
  8  7 goals that require legislation.
  8  8    Sec. 6.  Section 8.22A, subsections 3, 4, and 5, Code 2003,
  8  9 are amended to read as follows:
  8 10    3.  By December 15 of each fiscal year the conference shall
  8 11 agree to a revenue estimate for the fiscal year beginning the
  8 12 following July 1.  That each of the two following fiscal
  8 13 years.
  8 14    a.  In the fiscal year preceding a fiscal biennium, the
  8 15 estimate for each of the fiscal years of the ensuing fiscal
  8 16 biennium shall be used by the governor in the preparation of
  8 17 the budget message under section 8.22, and by the first
  8 18 regular session of the general assembly in the budget process
  8 19 for each of the fiscal years of that fiscal biennium, and in
  8 20 determining an adjusted revenue estimate under section 8.54
  8 21 for each of the fiscal years of the fiscal biennium.
  8 22    b.  In the fiscal year in which the following fiscal year
  8 23 is the second year of the fiscal biennium, the conference
  8 24 shall agree by December 15 to another estimate for the second
  8 25 fiscal year and if this estimate is different from that which
  8 26 was used in the initial budget process for the second fiscal
  8 27 year, the adjusted revenue estimate determined pursuant to
  8 28 section 8.54 for that second fiscal year shall be revised
  8 29 based upon the different estimate.  The different estimate
  8 30 shall be used by the governor in the preparation of the budget
  8 31 message under section 8.22, by the general assembly in the
  8 32 budget process, and in determining an adjusted revenue
  8 33 estimate under section 8.54 for the second fiscal year.
  8 34    c.  If the conference agrees to a different estimate at a
  8 35 later meeting which projects a greater amount of revenue than
  9  1 the initial estimate amount for a fiscal year agreed to by
  9  2 December 15, the governor and the general assembly shall
  9  3 continue to use the initial estimate amount in the budget
  9  4 process for that fiscal year.  However, if the conference
  9  5 agrees to a different estimate for a fiscal year at a later
  9  6 meeting which projects a lesser amount of revenue than the
  9  7 initial estimate amount, the governor and the general assembly
  9  8 shall use the lesser amount in the budget process for that
  9  9 fiscal year.  As used in this subsection, "later meeting"
  9 10 means only those later meetings which are held prior to the
  9 11 conclusion of the a regular session of the general assembly.
  9 12    4.  At the meeting in which the conference agrees to the
  9 13 revenue estimate for the following a fiscal year in accordance
  9 14 with the provisions of subsection 3, which is used in
  9 15 determining an adjusted revenue estimate under section 8.54,
  9 16 the conference shall agree to an estimate for tax refunds
  9 17 payable from that estimated revenue.  The estimates required
  9 18 by this subsection shall be used in determining the adjusted
  9 19 revenue estimate under section 8.54.
  9 20    5.  At the meeting in which the conference agrees to the
  9 21 revenue estimate for the succeeding a fiscal year in
  9 22 accordance with the provisions of subsection 3, which is used
  9 23 in determining an adjusted revenue estimate under section
  9 24 8.54, the conference shall also agree to the following
  9 25 estimates which shall be used by the governor in preparation
  9 26 of the budget message under section 8.22 and the general
  9 27 assembly in the budget process for the succeeding fiscal year:
  9 28    a.  The amount of lottery revenues for the following fiscal
  9 29 year to be available for disbursement following the deductions
  9 30 made pursuant to section 99E.10, subsection 1.
  9 31    b.  The amount of revenue for the following fiscal year
  9 32 from gambling revenues and from interest earned on the cash
  9 33 reserve fund and the economic emergency fund to be deposited
  9 34 in the rebuild Iowa infrastructure fund under section 8.57,
  9 35 subsection 5, paragraph "e".
 10  1    c.  The amount of accruals of those revenues collected by
 10  2 or due from entities other than the state on or before June 30
 10  3 of the fiscal year but not remitted to the state until after
 10  4 June 30.
 10  5    d.  The amount of accrued lottery revenues collected on or
 10  6 before June 30 of the fiscal year but not transferred to the
 10  7 general fund of the state until after June 30.
 10  8    Sec. 7.  Section 8.23, Code 2003, is amended to read as
 10  9 follows:
 10 10    8.23  ANNUAL DEPARTMENTAL ESTIMATES.
 10 11    1.  On or before October 1, prior to each legislative the
 10 12 first regular session of a general assembly, all departments
 10 13 and establishments of the government shall transmit to the
 10 14 director, on blanks forms to be furnished by the director,
 10 15 estimates of their expenditure requirements, including every
 10 16 proposed expenditure, for each fiscal year of the ensuing
 10 17 fiscal year biennium, classified so as to distinguish between
 10 18 expenditures estimated for administration, operation, and
 10 19 maintenance, and the cost of each project involving the
 10 20 purchase of land or the making of a public improvement or
 10 21 capital outlay of a permanent character, together with
 10 22 supporting data and explanations as called for by the
 10 23 director.
 10 24    2.  On or before October 1, prior to the second regular
 10 25 session of a general assembly, all departments and
 10 26 establishments shall transmit to the director, on forms
 10 27 furnished by the director, estimates of their requirements for
 10 28 supplemental appropriations or appropriations reductions for
 10 29 the fiscal biennium budget in progress.
 10 30    a. 3.  The budget estimates shall include for those
 10 31 agencies which pay for energy directly a line item for energy
 10 32 expenses itemized by type of energy and location.
 10 33    b. 4.  The estimates of expenditure requirements shall be
 10 34 based upon seventy=five percent of the funding provided for
 10 35 the current fiscal year accounted for by program reduced by
 11  1 the historical employee vacancy factor in form specified by
 11  2 the director and the remainder of the estimate estimates of
 11  3 expenditure requirements prioritized by program.  The
 11  4 estimates shall be accompanied with performance measures for
 11  5 evaluating the effectiveness of the program.
 11  6    c. 5.  The budget estimates for an agency as defined in
 11  7 section 8E.103 shall be based on achieving goals contained in
 11  8 the enterprise strategic plan and the agency's strategic plan
 11  9 as provided for in chapter 8E.  The estimates shall be
 11 10 accompanied by a description of the measurable and other
 11 11 results to be achieved by the agency.  Performance measures
 11 12 shall be based on the goals developed pursuant to sections
 11 13 8E.205, 8E.206, and 8E.208.  The estimates shall be
 11 14 accompanied by an explanation of the manner in which
 11 15 appropriations requested for the administration and
 11 16 maintenance of the agency meet goals contained in the
 11 17 enterprise strategic plan and the agency's strategic plan,
 11 18 including identifying goals that require legislation.
 11 19    d. 6.  a.  If a department or establishment fails to submit
 11 20 estimates as required in subsection 1 within the time
 11 21 specified, the legislative fiscal bureau shall use the amounts
 11 22 of the appropriations to the department or establishment for
 11 23 the fiscal year in process at the time the estimates are
 11 24 required to be submitted as the amounts for the department's
 11 25 or establishment's request in the documents submitted to the
 11 26 general assembly for each fiscal year of the ensuing fiscal
 11 27 year biennium and the governor shall cause estimates to be
 11 28 prepared for that department or establishment as in the
 11 29 governor's opinion are reasonable and proper.
 11 30    b.  If a department or establishment fails to submit
 11 31 estimates as required in subsection 2 within the time
 11 32 specified, the legislative fiscal bureau shall report to the
 11 33 general assembly that the department or establishment does not
 11 34 require a supplemental appropriation.
 11 35    e. 7.  The director shall furnish standard budget request
 12  1 forms to each department or agency of state government.
 12  2    2. 8.  On or before November 15 prior to each regular
 12  3 legislative session, all departments and establishments of
 12  4 government and the judicial branch shall transmit to the
 12  5 department of management and the legislative fiscal bureau
 12  6 estimates of their receipts and expenditure requirements from
 12  7 federal or other nonstate grants, receipts, and funds for each
 12  8 of the two ensuing fiscal year years.  The transmittal shall
 12  9 include the names of the grantor and the grant or the source
 12 10 of the funds, the estimated amount of the funds, and the
 12 11 planned expenditures and use of the funds.  The format of the
 12 12 transmittal shall be specified by the legislative fiscal
 12 13 bureau.
 12 14    Sec. 8.  Section 8.30, Code 2003, is amended to read as
 12 15 follows:
 12 16    8.30  AVAILABILITY OF APPROPRIATIONS.
 12 17    The appropriations made are not available for expenditure
 12 18 until allotted as provided for in section 8.31.  All
 12 19 appropriations are declared to be maximum and proportionate
 12 20 appropriations, the purpose being to make the appropriations
 12 21 payable in full in the amounts named if the estimated budget
 12 22 resources during the each fiscal year of the fiscal biennium
 12 23 for which the appropriations are made, are sufficient to pay
 12 24 all of the appropriations in full.  The governor shall
 12 25 restrict allotments only to prevent an overdraft or deficit in
 12 26 any fiscal year for which appropriations are made.
 12 27    Sec. 9.  Section 8.36, Code 2003, is amended to read as
 12 28 follows:
 12 29    8.36  FISCAL BIENNIUM == FISCAL YEAR.
 12 30    1.  The fiscal biennium of the state ends on the thirtieth
 12 31 day of June in each odd=numbered fiscal year; the succeeding
 12 32 fiscal biennium begins on the day following.
 12 33    2.  The fiscal year of the government shall commence on the
 12 34 first day of July and end on the thirtieth day of June.  This
 12 35 fiscal year shall be used for purposes of making
 13  1 appropriations and of financial reporting and shall be
 13  2 uniformly adopted by all departments and establishments of the
 13  3 government.
 13  4    However, the department of workforce development may use
 13  5 the federal fiscal year instead of the fiscal year commencing
 13  6 on July 1.
 13  7    Sec. 10.  Section 8.41, subsection 2, Code 2003, is amended
 13  8 to read as follows:
 13  9    2.  Federal funds deposited in the state treasury as
 13 10 provided in subsection 1 shall either be included as part of
 13 11 the governor's budget required by section 8.22 or shall be
 13 12 included in a separate recommendation made by the governor to
 13 13 the general assembly.  If federal funds received in the form
 13 14 of block grants or categorical grants have not been included
 13 15 in the governor's budget for the current fiscal year biennium
 13 16 because of time constraints or because a budget is not being
 13 17 submitted for the next fiscal second year of a fiscal
 13 18 biennium, the governor shall submit a supplemental statement
 13 19 to the general assembly listing the federal funds received and
 13 20 including the same information for the federal funds required
 13 21 by section 8.22, part I, subsection 2, paragraph "e", for the
 13 22 statement of federal funds in the governor's budget.
 13 23    Sec. 11.  Section 8.54, subsection 1, paragraph a, Code
 13 24 2003, is amended to read as follows:
 13 25    a.  "Adjusted revenue estimate" means the appropriate
 13 26 revenue estimate for the general fund for the following a
 13 27 fiscal year as determined by the revenue estimating conference
 13 28 under section 8.22A, subsection 3, adjusted by subtracting
 13 29 estimated tax refunds payable from that estimated revenue and
 13 30 as determined by the conference, adding any new revenues which
 13 31 may be considered to be eligible for deposit in the general
 13 32 fund.
 13 33    Sec. 12.  Section 8.54, subsections 2 and 3, Code 2003, is
 13 34 amended to read as follows:
 13 35    2.  There is created a state general fund expenditure
 14  1 limitation for each fiscal year beginning on or after July 1,
 14  2 1993 of the fiscal biennium, calculated as provided in this
 14  3 section.  The expenditure limitation shall apply to each of
 14  4 the fiscal years of the fiscal biennium as follows:
 14  5    a.  In the fiscal year preceding a fiscal biennium, a state
 14  6 general fund expenditure limitation shall be calculated for
 14  7 and shall apply to each of the fiscal years of the ensuing
 14  8 fiscal biennium.
 14  9    b.  However, if the adjusted revenue estimate for the
 14 10 second fiscal year of the fiscal biennium is revised due to a
 14 11 different estimate developed for that fiscal year under
 14 12 section 8.22A, subsection 3, paragraph "b", the state general
 14 13 fund expenditure limitation for that fiscal year shall be
 14 14 readjusted in accordance with the revision.  The governor
 14 15 shall submit recommendations for and the general assembly
 14 16 shall pass revisions in revenue provisions and appropriations
 14 17 as necessary so that the budget for the second fiscal year of
 14 18 the fiscal biennium does not exceed the readjusted state
 14 19 general fund expenditure limitation.
 14 20    3.  Except as otherwise provided in this section, the state
 14 21 general fund expenditure limitation for a fiscal year shall be
 14 22 ninety=nine percent of the appropriate adjusted revenue
 14 23 estimate.
 14 24    Sec. 13.  Section 8.54, subsection 5, Code 2003, is amended
 14 25 to read as follows:
 14 26    5.  For a fiscal years year in which section 8.55,
 14 27 subsection 2, results in moneys being transferred to the
 14 28 general fund, the original state general fund expenditure
 14 29 limitation amount provided for in subsection 3 for that fiscal
 14 30 year shall be readjusted to include the moneys which are so
 14 31 transferred.
 14 32    Sec. 14.  Section 8.54, subsection 7, Code 2003, is amended
 14 33 to read as follows:
 14 34    7.  The governor shall transmit to the general assembly, in
 14 35 accordance with section 8.21, a budget which does not exceed
 15  1 the state general fund expenditure limitation for a fiscal
 15  2 year.  The general assembly shall pass a budget which does not
 15  3 exceed the state general fund expenditure limitation for a
 15  4 fiscal year.  The governor shall not transmit a budget with
 15  5 recommended appropriations in excess of the state general fund
 15  6 expenditure limitation for a fiscal year and the general
 15  7 assembly shall not pass a budget with appropriations in excess
 15  8 of the state general fund expenditure limitation for a fiscal
 15  9 year.  The governor shall not approve or disapprove
 15 10 appropriation bills or items of appropriation bills passed by
 15 11 the general assembly in a manner that would cause the final
 15 12 budget approved by the governor to exceed the state general
 15 13 fund expenditure limitation for a fiscal year.  In complying
 15 14 with the requirements of this subsection, the governor and the
 15 15 general assembly shall not rely on any anticipated reversion
 15 16 of appropriations in order to meet the state general fund
 15 17 expenditure limitation for a fiscal year.
 15 18    Sec. 15.  Section 8.57, subsection 5, Code 2003, is amended
 15 19 by adding the following new paragraph:
 15 20    NEW PARAGRAPH.  f.  Appropriations from the rebuild Iowa
 15 21 infrastructure fund shall be made on a biennial basis.
 15 22    Sec. 16.  Section 602.1301, subsection 1, Code 2003, is
 15 23 amended to read as follows:
 15 24    1.  The supreme court shall prepare an annual a biennial
 15 25 operating budget for the judicial branch, and shall submit a
 15 26 budget request to the general assembly for the fiscal period
 15 27 biennium for which the general assembly is appropriating
 15 28 funds.
 15 29    Sec. 17.  Section 602.1301, subsection 2, paragraph a,
 15 30 unnumbered paragraph 1, Code 2003, is amended to read as
 15 31 follows:
 15 32    As early as possible, but not later than December 1
 15 33 preceding the first regular session of a general assembly, the
 15 34 supreme court shall submit to the legislative fiscal bureau
 15 35 the annual biennial budget request and detailed supporting
 16  1 information for the judicial branch.  The submission shall be
 16  2 designed to assist the legislative fiscal bureau in its
 16  3 preparation for legislative consideration of the budget
 16  4 request.  The information submitted shall contain and be
 16  5 arranged in a format substantially similar to the format
 16  6 specified by the director of management and used by all
 16  7 departments and establishments in transmitting to the director
 16  8 estimates of their expenditure requirements pursuant to
 16  9 section 8.23, except the estimates of expenditure requirements
 16 10 shall be based upon one hundred percent of funding for the
 16 11 fiscal years comprising the current fiscal year biennium
 16 12 accounted for by program, and using the same line item
 16 13 definitions of expenditures as used for the current fiscal
 16 14 year's biennium's budget request, and the remainder of the
 16 15 estimate of expenditure requirements prioritized by program.
 16 16 The supreme court shall also make use of the department of
 16 17 management's automated budget system when submitting
 16 18 information to the director of management to assist the
 16 19 director in the transmittal of information as required under
 16 20 section 8.35A.  The supreme court shall budget and track
 16 21 expenditures by the following separate organization codes:
 16 22    Sec. 18.  Section 602.1301, subsection 2, paragraph b, Code
 16 23 2003, is amended to read as follows:
 16 24    b.  Before December 1 preceding the first regular session
 16 25 of a general assembly, the supreme court shall submit to the
 16 26 director of management an estimate of the total expenditure
 16 27 requirements of the judicial branch.  The director of
 16 28 management shall submit this estimate received from the
 16 29 supreme court to the governor for inclusion without change in
 16 30 the governor's proposed budget for the succeeding fiscal year
 16 31 biennium.  The estimate shall also be submitted to the
 16 32 chairpersons of the committees on appropriations.
 16 33    Sec. 19.  Section 602.1301, subsection 2, Code 2003, is
 16 34 amended by adding the following new paragraph:
 16 35    NEW PARAGRAPH.  c.  The supreme court may submit a
 17  1 supplemental budget request for the second year of a fiscal
 17  2 biennium providing for supplemental appropriations to or
 17  3 appropriation reductions from the previously enacted fiscal
 17  4 biennium budget.  A supplemental request shall be subject to
 17  5 the same format and information requirements as a biennial
 17  6 budget request under paragraph "a" and an expenditure
 17  7 requirements estimate under paragraph "b".  A supplemental
 17  8 budget request shall be submitted on or before December 1
 17  9 preceding the second year of the fiscal biennium to the
 17 10 legislative fiscal bureau and the director of the department
 17 11 of management.
 17 12    Sec. 20.  EFFECTIVE DATE AND APPLICABILITY.  This Act takes
 17 13 effect July 1, 2004, and is applicable to the fiscal biennium
 17 14 beginning July 1, 2005, and ending June 30, 2007.
 17 15                           EXPLANATION
 17 16    This bill provides for state biennial appropriations.
 17 17    The bill provides for the budget process and appropriations
 17 18 to be made on a biennial basis commencing with the fiscal
 17 19 biennium beginning July 1, 2005, and ending June 30, 2007.
 17 20    The bill takes effect July 1, 2004, and is applicable to
 17 21 the fiscal biennium beginning July 1, 2005, and ending June
 17 22 30, 2007.
 17 23 LSB 1293YH 80
 17 24 jp/sh/8