SENATE FILE 2156

BY  ANDERSON, BERTRAND, WHITVER, HAMERLINCK, FEENSTRA, SORENSON, BACON, KAPUCIAN, ERNST, GREINER, and WARD

A BILL FOR

An Act relating to funding for projects on state and local roads and bridges in critical need of repair or maintenance, and making an appropriation.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 8.55, subsection 2, paragraph a, Code Supplement 2011, is amended to read as follows:
   a.  The maximum balance of the fund is the amount equal to two and one-half percent of the adjusted revenue estimate for the fiscal year. If the amount of moneys in the Iowa economic emergency fund is equal to the maximum balance, moneys in excess of this amount shall be distributed as follows:
   (1)  The first sixty million dollars of the difference between the actual net revenue for the general fund of the state for the fiscal year and the adjusted revenue estimate for the fiscal year shall be transferred to the taxpayers trust fund.
   (2)  Moneys in excess of the amount transferred under subparagraph (1), up to a maximum amount of sixty million dollars, shall be transferred to the critical needs road fund created under section 312B.1.
   (2)

(3)  The remainder of the excess, if any, shall be transferred to the general fund of the state.
    Sec. 2.  Section 8.58, Code Supplement 2011, is amended to read as follows:
   8.58  Exemption from automatic application.
   1.  To the extent that moneys appropriated under section 8.57 do not result in moneys being credited to the general fund under section 8.55, subsection 2, moneys appropriated under section 8.57 and moneys contained in the cash reserve fund, rebuild Iowa infrastructure fund, environment first fund, Iowa economic emergency fund, and taxpayers trust fund, and critical needs road fund shall not be considered in the application of any formula, index, or other statutory triggering mechanism which would affect appropriations, payments, or taxation rates, contrary provisions of the Code notwithstanding.
   2.  To the extent that moneys appropriated under section 8.57 do not result in moneys being credited to the general fund under section 8.55, subsection 2, moneys appropriated under section 8.57 and moneys contained in the cash reserve fund, rebuild Iowa infrastructure fund, environment first fund, Iowa economic emergency fund, and taxpayers trust fund, and critical needs road fund shall not be considered by an arbitrator or in negotiations under chapter 20.
    Sec. 3.  NEW SECTION.  312B.1  Critical needs road fund.
   1.  A critical needs road fund is created in the state treasury under the control of the department of transportation. The fund shall be separate from the general fund of the state and the balance in the fund shall not be considered part of the balance of the general fund of the state. The fund shall consist of moneys appropriated by the general assembly and any revenues credited by law to the critical needs road fund. The moneys in the fund are not subject to section 8.33 and shall not be transferred, used, obligated, appropriated, or otherwise encumbered except as provided in this section. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys deposited in the critical needs road fund shall be credited to the fund.
   2.  Moneys in the critical needs road fund are appropriated to the department of transportation to be used as directed by the department exclusively for the repair and maintenance of roads on the primary or secondary road system, or the municipal street system, including bridges. The department shall establish guidelines to be used by the department, counties, and cities for identifying roads and bridges in critical need of repair or maintenance and for the department to use in evaluating and prioritizing state and local road projects to receive funding under this section. Counties and cities may apply for funding from the critical needs road fund by submitting to the department proposals for projects on roads under their respective jurisdictions. A qualifying proposal shall include information regarding the status and condition of the road that is the subject of the proposal, the plan for completing the project, and any other information required by the department. The department shall develop an application process for counties and cities to use for the submission of proposals for the use of funds under this section. Moneys distributed from the critical needs road fund may be used in combination with other available funding as necessary to accomplish the completion of a qualifying project and to accomplish the goal of reducing the number of Iowa roads and bridges with critical needs.
EXPLANATION
   This bill establishes a critical needs road fund in the state treasury under the control of the department of transportation. Moneys in the fund are appropriated to the department to be used exclusively for repair and maintenance of state and local roads. The department is authorized to direct the use of the fund’s resources according to guidelines to be established by the department for identifying roads and bridges in critical need of repair or maintenance and for prioritizing state and local critical needs projects. Counties and cities may submit proposals for the use of funds on roads under their jurisdiction according to an application process to be developed by the department. Moneys from the fund may be used in combination with other available funding.
   The bill provides that if the economic emergency fund reaches the maximum balance, after the required transfer of a portion of the excess to the taxpayers trust fund and before any remaining excess is transferred to the general fund of the state, any excess moneys in an amount up to $60 million shall be transferred to the critical needs road fund.