Senate File 352 - Introduced SENATE FILE 352 BY ZAUN A BILL FOR An Act relating to the taxpayers trust fund by modifying the 1 transfer of moneys from the Iowa economic emergency fund to 2 the taxpayers trust fund and including effective date and 3 retroactive applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1743XS (3) 86 mm/sc

S.F. 352 Section 1. Section 8.54, subsection 5, Code 2015, is amended 1 by striking the subsection. 2 Sec. 2. Section 8.55, subsection 2, Code 2015, is amended 3 to read as follows: 4 2. The maximum balance of the fund is the amount equal to 5 two and one-half percent of the adjusted revenue estimate for 6 the fiscal year. If the amount of moneys in the Iowa economic 7 emergency fund is equal to the maximum balance, moneys in 8 excess of this amount shall be distributed as follows: 9 a. The first sixty million dollars of the difference between 10 the actual net revenue for the general fund of the state for 11 the fiscal year and the adjusted revenue estimate for the 12 fiscal year shall be transferred to the taxpayers trust fund. 13 b. The remainder of the excess, if any, shall be transferred 14 to the general fund of the state. 15 Sec. 3. Section 8.58, Code 2015, is amended to read as 16 follows: 17 8.58 Exemption from automatic application. 18 1. To the extent that moneys appropriated under section 19 8.57 do not result in moneys being credited to the general fund 20 under section 8.55, subsection 2 , moneys Moneys appropriated 21 under in section 8.57 and moneys contained in the cash reserve 22 fund, rebuild Iowa infrastructure fund, environment first fund, 23 Iowa economic emergency fund, taxpayers trust fund, and state 24 bond repayment fund shall not be considered in the application 25 of any formula, index, or other statutory triggering mechanism 26 which would affect appropriations, payments, or taxation rates, 27 contrary provisions of the Code notwithstanding. 28 2. To the extent that moneys appropriated under section 29 8.57 do not result in moneys being credited to the general fund 30 under section 8.55, subsection 2 , moneys Moneys appropriated 31 under in section 8.57 and moneys contained in the cash reserve 32 fund, rebuild Iowa infrastructure fund, environment first fund, 33 Iowa economic emergency fund, taxpayers trust fund, and state 34 bond repayment fund shall not be considered by an arbitrator or 35 -1- LSB 1743XS (3) 86 mm/sc 1/ 3

S.F. 352 in negotiations under chapter 20 . 1 Sec. 4. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 2 immediate importance, takes effect upon enactment. 3 Sec. 5. RETROACTIVE APPLICABILITY. This Act applies 4 retroactively to July 1, 2014, to moneys attributed to fiscal 5 years beginning on or after July 1, 2014. 6 EXPLANATION 7 The inclusion of this explanation does not constitute agreement with 8 the explanation’s substance by the members of the general assembly. 9 This bill relates to the transfer of moneys from the Iowa 10 economic emergency fund to the taxpayers trust fund. 11 Under current law in Code section 8.55, when the balance of 12 the Iowa economic emergency fund is equal to the fund’s maximum 13 balance, the excess is first distributed to the taxpayers trust 14 fund up to a formula amount and the remainder is transferred 15 to the general fund of the state. The bill provides that the 16 entire excess is transferred to the taxpayers trust fund and 17 moneys would no longer be transferred to the general fund of 18 the state. 19 By operation of law in Code section 8.57E, moneys in the 20 taxpayers trust fund are used each fiscal year to provide an 21 Iowa taxpayers trust fund tax credit in accordance with Code 22 section 422.11E. 23 Code section 8.54, relating to the state general fund 24 expenditure limitation, is amended to delete a subsection that 25 provides for readjustment of the expenditure limitation to 26 reflect moneys anticipated to be transferred to the general 27 fund of the state from the Iowa economic emergency fund. 28 Code section 8.58, providing an exemption from statutory 29 triggering mechanisms and consideration by an arbitrator or in 30 a collective bargaining negotiation under Code chapter 20 for 31 moneys in various funds, is amended to eliminate a reference 32 to the transfer from the Iowa economic emergency fund to the 33 general fund of the state. 34 The bill takes effect upon enactment and applies 35 -2- LSB 1743XS (3) 86 mm/sc 2/ 3

S.F. 352 retroactively to July 1, 2014, to moneys attributed to fiscal 1 years beginning on or after July 1, 2014. 2 -3- LSB 1743XS (3) 86 mm/sc 3/ 3