Text: SSB00362 Text: SSB00364 Text: SSB00300 - SSB00399 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 DIVISION I 1 2 CAPITAL PROJECT AND LEASE-PURCHASE REQUIREMENTS 1 3 Section 1. Section 2.47A, subsection 1, paragraph d, Code 1 4 1995, is amended to read as follows: 1 5 d. Receivesemiannualannual status reports for all 1 6 ongoing capital projects of state agencies, pursuant to 1 7 section 18.12, subsection 15. 1 8 Sec. 2. Section 8.46, Code 1995, is amended to read as 1 9 follows: 1 10 8.46 LEASE-PURCHASE &endash; REPORTING. 1 11 1. For the purposes of this section, unless the context 1 12 otherwise requires, "state: 1 13 a. "Installment acquisition" includes, but is not limited 1 14 to, an arrangement in which title of ownership passes when the 1 15 first installment payment is made. 1 16 b. "Lease-purchase arrangement" includes, but is not 1 17 limited to, an arrangement in which title of ownership passes 1 18 when the final installment payment is made. 1 19 c. "State agency" means any executive, judicial, or 1 20 legislative department, commission, board, institution, 1 21 division, bureau, office, agency, or other entity of state 1 22 government. 1 231.2.BeforeAt least thirty days prior to entering into 1 24 a contract involving a lease-purchase or installment 1 25 acquisition arrangement in which any part or the total amount 1 26 of the contract is at leastfiftythirty thousand dollars, a 1 27 state agency shall notify the legislative fiscal bureau 1 28 concerning the contract. The legislative fiscal bureau shall 1 29 compile the notifications for submission to the legislative 1 30 fiscal committee of the legislative councilregarding the1 31contract. The notification is required regardless of the 1 32 source of payment for the lease-purchase or installment 1 33 acquisition arrangement. The notification shall include all 1 34 of the following information: 1 35 a. A description of the object of the lease-purchase or 2 1 installment acquisition arrangement. 2 2b. The cost of the contract.2 3c.b. The proposed terms of the contract. 2 4d.c. Thetotalcost of the contract, including principal 2 5 and interest costs. If the actual cost of a contract is not 2 6 known at least thirty days prior to entering into the 2 7 contract, the state agency shall estimate the principal and 2 8 interest costs for the contract. 2 9e.d. An identification of the means and source of payment 2 10 of the contract. 2 11f.e. An analysis of consequences of delaying or abandoning 2 12 the commencement of the contract. 2 132.3. The legislative fiscal committee shall report to the 2 14 legislative council concerning the notifications it receives 2 15 pursuant to this section. 2 163. A state agency shall report quarterly to the2 17legislative fiscal committee concerning its contracts2 18involving a lease-purchase arrangement. The format of the2 19report shall be determined by the legislative fiscal bureau in2 20consultation with the department of management. The report2 21shall include all of the following information:2 22a. A description of the objects of a lease-purchase2 23arrangement under contract.2 24b. The total costs of the contracts.2 25c. Total principal and interest cost in each fiscal year2 26of each contract.2 27d. An identification of the means and source of payment2 28for each contract.2 29 Sec. 3. Section 18.12, subsection 15, Code 1995, is 2 30 amended to read as follows: 2 31 15. Preparesemiannualannual status reports for all 2 32 ongoing capital projects of all state agencies, as defined in 2 33 section 8.3A, and submit the status reports to the legislative 2 34 capital projects committee. 2 35 DIVISION II 3 1 REVENUE ESTIMATING 3 2 Sec. 4. Section 8.22A, Code 1995, is amended by adding the 3 3 following new subsection: 3 4 NEW SUBSECTION. 5. At the meeting in which the conference 3 5 agrees to the revenue estimate for the succeeding fiscal year 3 6 in accordance with the provisions of subsection 3, the 3 7 conference shall also agree to the following estimates which 3 8 shall be used by the governor and the general assembly in 3 9 preparation of the budget message under section 8.22 and the 3 10 general assembly in the budget process for the succeeding 3 11 fiscal year: 3 12 a. The amount of lottery revenues for the following fiscal 3 13 year to be available for disbursement following the deductions 3 14 made pursuant to section 99E.10, subsection 1. 3 15 b. The amount of the appropriation necessary for the 3 16 succeeding fiscal year to fund the medical assistance program 3 17 under chapter 249A. This estimate shall be developed based 3 18 upon the state and federal requirements for the medical 3 19 assistance program in effect at the time the estimate is made 3 20 unless the members of the revenue estimating conference agree 3 21 to assume different requirements for purposes of developing 3 22 the estimate. 3 23 DIVISION III 3 24 STATE PAYMENT PROVISIONS 3 25 Sec. 5. Section 421.31, Code 1995, is amended by adding 3 26 the following new subsection: 3 27 NEW SUBSECTION. 11. FEDERAL CASH MANAGEMENT IMPROVEMENT 3 28 ACT ADMINISTRATOR &endash; APPROPRIATION. To serve as administrator 3 29 for state actions relating to the federal Cash Management and 3 30 Improvement Act of 1990, Pub. L. No. 101-453, as codified in 3 31 31 U.S.C. } 6503. The director shall perform the following 3 32 duties relating to the federal law and shall administer the 3 33 funds appropriated in this section: 3 34 a. Act as the designated representative of the state in 3 35 the negotiation and administration of contracts between the 4 1 state and federal government relating to the federal law. 4 2 b. Modify the centralized statewide accounting system and 4 3 develop, or require to be developed by the appropriate 4 4 departments of state government, the necessary reports and 4 5 procedures necessary to complete the managerial and financial 4 6 reports required to comply with the federal law. 4 7 Sec. 6. Section 260D.12, as amended by 1994 Iowa Acts, 4 8 chapter 1181, section 13, is amended to read as follows: 4 9 260D.12 PAYMENT OF APPROPRIATION. 4 10 Payment of appropriations for distribution under this 4 11 chapter or of appropriations made in lieu of such 4 12 appropriations, shall be made by the department of revenue and 4 13 finance infourmonthly installments due on or aboutNovember4 1415, February 15, May 15, and August 15the fifteenth day of 4 15 each month of a budget year, and installments shall be as 4 16 nearly equal as possible, as determined by the department of 4 17 revenue and finance, taking into consideration the relative 4 18 budget and cash position of the state resources. 4 19 Sec. 7. 1994 Iowa Acts, chapter 1181, section 18, is 4 20 amended to read as follows: 4 21 SEC. 18.CONTINGENTEFFECTIVE DATE. Sections 12, 13, 14, 4 22 and 15 of this division shall take effectupon the publication4 23date of the state comprehensive annual financial report4 24prepared in accordance with generally accepted accounting4 25principles which indicates that the payment of the obligation4 26described in the section is made in accordance with generally4 27accepted accounting principlesJuly 1, 1995.A report shall4 28be made by the department of management to the Code editor on4 29or before the publication date of the report.4 30 Sec. 8. 1994 Iowa Acts, chapter 1193, sections 2, 4, and 4 31 35, are repealed. 4 32 Sec. 9. EFFECTIVE DATE. Section 5 of this division, 4 33 amending section 421.31, being deemed of immediate importance, 4 34 takes effect upon enactment. 4 35 DIVISION IV 5 1 STRATEGIC PLANNING 5 2 Sec. 10. NEW SECTION. 8.65 STRATEGIC PLANNING. 5 3 1. The governor, supreme court, and general assembly shall 5 4 each develop a five-year strategic plan for their respective 5 5 branches of government. The governor and general assembly 5 6 shall also develop a five-year strategic plan providing long- 5 7 term goals and objectives for the state. The strategic plans 5 8 shall be annually updated and new five-year plans developed 5 9 for each succeeding five-year period. 5 10 2. Following presentation of the initial executive branch 5 11 strategic plan, yearly updates of the plan shall be submitted 5 12 as part of the governor's annual budget proposal to the 5 13 general assembly under section 8.22. The plan shall utilize 5 14 information obtained pursuant to section 8.52, include all 5 15 relevant budget projections, and include the plans developed 5 16 by each department and establishment of government for that 5 17 department or establishment in accordance with this section. 5 18 The governor shall provide an overall compilation of the plans 5 19 and identify the governor's top five priorities for the 5 20 ensuing fiscal year in the annual budget message required 5 21 under section 8.22. The plan by each department or establish- 5 22 ment shall be submitted to the governor at the same time and 5 23 with the budget materials required under section 8.23 and 5 24 shall be considered at the public hearing required pursuant to 5 25 section 8.26. A department's or establishment's plan shall be 5 26 submitted to the general assembly at the same time it is 5 27 submitted to the governor. The plan for each department and 5 28 establishment shall provide budget projections and 5 29 requirements, long-term and short-term goals, and other 5 30 information relating to implementation of the plan, including 5 31 but not limited to all of the following: 5 32 a. Identifying and providing a time line for the critical 5 33 goals and objectives to be accomplished during the five-year 5 34 period. 5 35 b. Providing detailed estimates of the related costs. 6 1 c. Identifying the other resources, policy considerations, 6 2 and any cooperative involvement by other departments and 6 3 agencies of state government necessary to attain the critical 6 4 goals and objectives. 6 5 d. Identifying performance indicators for measuring the 6 6 accomplishment of the critical goals and objectives. 6 7 e. Submitting an annual progress report based upon the 6 8 performance indicators. 6 9 3. The strategic planning elements required in subsection 6 10 2, paragraphs "a" through "e", shall be addressed in the 6 11 strategic plans developed by the legislative and judicial 6 12 branches of state government. The supreme court's plan shall 6 13 be submitted to the general assembly on or before the first 6 14 business day in January. The general assembly's strategic 6 15 plan shall be considered in a concurrent resolution and is 6 16 subject to approval by a constitutional majority of the 6 17 members of each chamber. 6 18 Sec. 11. APPLICABILITY. The initial strategic plans 6 19 required by section 8.65, as enacted by this Act, shall apply 6 20 to the 1996-1997 fiscal year and shall be submitted by the 6 21 executive and judicial branches in December 1995. 6 22 DIVISION V 6 23 CASH RESERVE AND SPECIAL FUNDS 6 24 Sec. 12. Section 8.55, subsection 3, Code 1995, is amended 6 25 to read as follows: 6 26 3. The moneys in the Iowa economic emergency fund may be 6 27 appropriated by the general assembly only in the fiscal year 6 28 for which the appropriation is made. The moneys shall only be 6 29 appropriated by the general assembly for emergency or other 6 30 nonrecurring expenditures. However, except as provided in 6 31 section 8.58, the balance in the Iowa economic emergency fund 6 32 may be used in determining the cash position of the general 6 33 fund of the state for the payment of state obligations. 6 34 Sec. 13. Section 8.56, subsection 1, Code 1995, is amended 6 35 to read as follows: 7 1 1. A cash reserve fund is created in the state treasury. 7 2 The cash reserve fund shall be separate from the general fund 7 3 of the state and shall not be considered part of the general 7 4 fund of the state except in determining the cash position of 7 5 the state as provided in subsection 3. The moneys in the cash 7 6 reserve fund are not subject to section 8.33 and shall not be 7 7 transferred, used, obligated, appropriated, or otherwise 7 8 encumbered except as provided in this section. 7 9 Notwithstanding section 12C.7, subsection 2, interest or 7 10 earnings on moneys deposited in the cash reserve fund shall be 7 11 credited to the rebuild Iowaeconomic emergency fund7 12 infrastructure fund created in section 8.57. Moneys in the 7 13 cash reserve fund may be used for cash flow purposes provided 7 14 that any moneys so allocated are returned to the cash reserve 7 15 fund by the end of each fiscal year. However, the fund shall 7 16 be considered a special account for the purposes of section 7 17 8.53. 7 18 Sec. 14. Section 8.57, subsection 2, Code 1995, is amended 7 19 to read as follows: 7 20 2. Moneys appropriated under subsection 1 shall be first 7 21 credited to the cash reserve fund. To the extent that moneys 7 22 appropriated under subsection 1 would make the moneys in the 7 23 cash reserve fund exceed the cash reserve goal percentage of 7 24 the adjusted revenue estimate for the fiscal year, the moneys 7 25 are appropriated to the department of management to be spent 7 26 for the purpose of eliminating Iowa's GAAP deficit, including 7 27 the payment of items budgeted in a subsequent fiscal year 7 28 which under generally accepted accounting principles should be 7 29 budgeted in the current fiscal year. These moneys shall be 7 30 deposited into a GAAP deficit reduction account established 7 31 within the department of management.Unspent moneys in this7 32account shall be available for expenditure for subsequent7 33fiscal years.The department of management shall annually 7 34 file with both houses of the general assembly at the time of 7 35 the submission of the governor's budget, a schedule of the 8 1 items for which moneys appropriated under this subsection for 8 2 the purpose of eliminating Iowa's GAAP deficit, including the 8 3 payment of items budgeted in a subsequent fiscal year which 8 4 under generally accepted accounting principles should be 8 5 budgeted in the current fiscal year, shall be spent. The 8 6 schedule shall indicate the fiscal year in which the spending 8 7 for an item is to take place and shall incorporate the items 8 8 detailed in 1994 Iowa Acts, chapter 1181, section 17. The 8 9 schedule shall list each item of expenditure and the estimated 8 10 dollar amount of moneys to be spent on that item for the 8 11 fiscal year. The department of management may submit during a 8 12 regular legislative session an amended schedule for 8 13 legislative consideration. If moneys appropriated under this 8 14 subsection are not enough to pay for all listed expenditures, 8 15 the department of management shall distribute the payments 8 16 among the listed expenditure items. Moneys appropriated to 8 17 the department of management under this subsection shall not 8 18 be spent on items other than those included in the filed 8 19 schedule.After elimination of the GAAP deficit, including8 20elimination of the making of any appropriation in an incorrect8 21fiscal year, any moneys in the GAAP deficit reduction account8 22shall be appropriatedOn September 1 following the close of a 8 23 fiscal year, moneys in the GAAP deficit reduction account 8 24 which remain unexpended for items on the filed schedule for 8 25 the previous fiscal year shall be credited to the Iowa 8 26 economic emergency fund. 8 27 Sec. 15. Section 8.57, subsection 5, Code 1995, is amended 8 28 to read as follows: 8 29 5. a. A rebuild Iowa infrastructureaccountfund is 8 30 created under the authority of the department of management. 8 31MoneysThe fund shall consist of appropriations made to the 8 32 fund and transfers of interest, earnings, and moneys from 8 33 other funds as provided by law. The fund shall be separate 8 34 from the general fund of the state and the balance in the fund 8 35 shall not be considered part of the balance of the general 9 1 fund of the state. However, the fund shall be considered a 9 2 special account for the purposes of section 8.53, relating to 9 3 generally accepted accounting principles. 9 4 b. Moneys in the infrastructure fund are not subject to 9 5 section 8.33. Notwithstanding section 12C.7, subsection 2, 9 6 interest or earnings on moneys in the infrastructure fund 9 7 shall be credited to the infrastructure fund. 9 8 c. Moneys in theaccountfund in a fiscal year shall be 9 9 used as directed by the general assembly for public 9 10 infrastructure-related expenditures. 9 11 d. The general assembly may provide that all or part of 9 12 the moneys deposited in the GAAP deficit reduction account 9 13 created in this section shall be transferred to the 9 14 infrastructureaccountfund in lieu of appropriation of the 9 15 moneys to the Iowa economic emergency fund. 9 16 Sec. 16. Section 8.58, Code 1995, is amended to read as 9 17 follows: 9 18 8.58 EXEMPTION FROM AUTOMATIC APPLICATION. 9 19 To the extent that moneys appropriated under section 8.57 9 20 do not result in moneys being credited to the general fund 9 21 under section 8.55, subsection 2, moneys appropriated under 9 22 section 8.57 and moneys contained in the cash reserve fund, 9 23 rebuild Iowa infrastructure fund, and Iowa economic emergency 9 24 fund shall not be considered in the application of any 9 25 formula, index, or other statutory triggering mechanism which 9 26 would affect appropriations, payments, or taxation rates, 9 27 contrary provisions of the Code notwithstanding. 9 28 To the extent that moneys appropriated under section 8.57 9 29 do not result in moneys being credited to the general fund 9 30 under section 8.55, subsection 2, moneys appropriated under 9 31 section 8.57 and moneys contained in the cash reserve fund, 9 32 rebuild Iowa infrastructure fund, and Iowa economic emergency 9 33 fund shall not be considered by an arbitrator or in 9 34 negotiations under chapter 20. 9 35 Sec. 17. NEW SECTION. 8.63 INNOVATIONS FUND. 10 1 1. An innovations fund is created in the state treasury 10 2 under the control of the department of management for the 10 3 purpose of stimulating and encouraging innovation in state 10 4 government by the awarding of repayable loans to state 10 5 agencies. 10 6 2. The director of the department of management shall 10 7 establish an eight-member committee to be called the state 10 8 innovations fund committee. The committee shall review all 10 9 requests for funds and approve loans of funds if the committee 10 10 determines that an agency request would result in cost savings 10 11 or added revenue to the general fund of the state. Eligible 10 12 projects are projects which cannot be funded from an agency's 10 13 operating budget without adversely affecting the agency's 10 14 normal service levels. Projects may include, but are not 10 15 limited to, purchase of advanced technology, contracting for 10 16 expert services, and acquisition of equipment or supplies. 10 17 3. A state agency seeking a loan from the innovations fund 10 18 shall complete an application form designed by the state 10 19 innovations fund committee which employs a return on 10 20 investment concept and demonstrates how state general fund 10 21 expenditures will be reduced or how state general fund 10 22 revenues will increase. Minimum loan requirements for state 10 23 agency requests shall be determined by the committee. As an 10 24 incentive to increase state general fund revenues, an agency 10 25 may retain up to fifty percent of savings realized in 10 26 connection with a loan from the innovations fund. The amount 10 27 retained shall be determined by the innovations fund 10 28 committee. 10 29 4. In order for the innovations fund to be self- 10 30 supporting, the innovations fund committee shall establish 10 31 repayment schedules for each innovation fund loan awarded. 10 32 Agencies shall repay the funds over a period not to exceed 10 33 five years with interest, at a rate to be determined by the 10 34 innovations fund committee. 10 35 5. Notwithstanding section 12C.7, subsection 2, interest 11 1 or earnings on moneys deposited in the innovations fund shall 11 2 be credited to the innovations fund. Notwithstanding section 11 3 8.33, moneys remaining in the innovations fund at the end of a 11 4 fiscal year shall not revert to the general fund of the state. 11 5 Sec. 18. EFFECTIVE DATE. This division of this Act, being 11 6 deemed of immediate importance, takes effect upon enactment. 11 7 EXPLANATION 11 8 This bill relates to state financial provisions and 11 9 provides effective dates. 11 10 Division I amends provisions involving lease-purchase 11 11 arrangements and capital projects. The amendments to sections 11 12 2.47 and 18.12 provide that capital projects reports submitted 11 13 by the department of general services and received by the 11 14 legislative capital projects committee of the legislative 11 15 council are to be made annually rather than semiannually. 11 16 Section 8.46 relates to lease-purchase arrangement reports 11 17 made to the legislative fiscal committee. This section is 11 18 amended to include arrangements in which the ownership title 11 19 passes on the final installment, include reporting on 11 20 contracts with installment acquisition arrangements, require 11 21 reporting at least 30 days prior to entering into a contract, 11 22 reduce the minimum reporting threshold from $50,000 to 11 23 $30,000, permit estimates if the actual costs are unknown at 11 24 the time of the report, and strike provisions requiring 11 25 quarterly reports concerning lease-purchase contracts. 11 26 Division II provides for the revenue estimating conference 11 27 to include two additional estimates in the estimate used by 11 28 the governor and the general assembly in developing the state 11 29 budget for the succeeding fiscal year. The additional 11 30 estimates are for net lottery revenue and for the 11 31 appropriation for the medical assistance program. 11 32 Division III relates to state payment provisions. 11 33 Section 421.31 is amended to require the director of the 11 34 department of revenue and finance to serve as administrator 11 35 for state actions concerning the federal Cash Management and 12 1 Improvement Act of 1990. The director is to represent the 12 2 state in negotiations with the federal government, modify the 12 3 state accounting system, and perform other financial 12 4 activities in compliance with the federal Act. The bill 12 5 provides that this section is effective upon enactment. 12 6 Sections 6, 7, and 8 relate to payment of state obligations 12 7 under generally accepted accounting principles (GAAP). 12 8 Section 260D.12 was amended in 1994 to provide for four equal 12 9 payments of state funding to merged area schools in the same 12 10 fiscal year. The bill provides for monthly installments on 12 11 the fifteenth day of each month of a fiscal year. The 1994 12 12 amendment to section 260D.12, and similar amendments to 12 13 section 257.16, relating to state school aid payments; section 12 14 285.2, relating to payments for nonpublic school 12 15 transportation; and section 303.18, relating to repayment to 12 16 the permanent school fund of a loan for the state historical 12 17 building, have contingent effective dates relating to payment 12 18 of the obligations in accordance with GAAP. The contingent 12 19 effective date is replaced with an effective date of July 1, 12 20 1995. 12 21 Section 8 repeals appropriations for fiscal year 1995-1996 12 22 to community colleges and for vocational aid. These 12 23 appropriations would provide the fourth-quarter payments for 12 24 those purposes for fiscal year 1994-1995 to be made in the 12 25 succeeding fiscal year. The governor's budget provides for 12 26 these payments to be made in fiscal year 1994-1995 from the 12 27 GAAP deficit reduction account in the department of 12 28 management. With the payment to be made from the GAAP deficit 12 29 account the appropriations for this purpose would be 12 30 duplicative. Section 8 also repeals a contingency provision 12 31 relating to the appropriations. 12 32 Division IV includes new section 8.65 requiring the 12 33 governor, supreme court, and the general assembly to develop 12 34 and submit five-year strategic plans for their respective 12 35 branches of government. This provision applies beginning with 13 1 the 1996-1997 fiscal year. 13 2 Division V relates to the cash reserve and other special 13 3 funds. Section 8.55, relating to the Iowa economic emergency 13 4 fund, is amended to provide that appropriations from the fund 13 5 may be made for nonrecurring expenditures. Section 8.56, 13 6 subsection 1, is amended to provide that interest from the 13 7 cash reserve is credited to the rebuild Iowa infrastructure 13 8 fund instead of the Iowa economic emergency fund. 13 9 Section 8.57, subsection 2, is amended to strike language 13 10 allowing unspent moneys to remain in the GAAP deficit 13 11 reduction account for subsequent fiscal years. The bill 13 12 requires that any moneys remaining in the account on September 13 13 1 which are not spent for items on the schedule for 13 14 eliminating the state deficit under general accepted 13 15 accounting principles (GAAP) for the previous fiscal year are 13 16 to be credited to the Iowa economic emergency fund. 13 17 The rebuild Iowa infrastructure account is changed to a 13 18 fund separate from the general fund of the state, its balance 13 19 is not to revert to any fund, and the fund is to retain its 13 20 interest and earnings. Section 8.58 is amended to provide 13 21 that moneys in the rebuild Iowa infrastructure fund shall not 13 22 be considered in the application of any formula, index, or 13 23 other statutory triggering mechanism which would affect 13 24 appropriations, payments, or taxation rates and shall not be 13 25 considered under collective bargaining provisions. 13 26 New section 8.63 establishes a state innovations fund in 13 27 the state treasury under the control of the department of 13 28 management and authorizes the director of the department of 13 29 management to establish an eight-member loan committee to 13 30 award loans to state agencies to implement expenditure 13 31 reducing or revenue enhancing ideas. The minimum loan request 13 32 is to be determined by the department of management and must 13 33 be for a project which cannot be funded without compromising 13 34 normal service levels. The innovations fund is designed to be 13 35 self-supporting with the agency required to repay the funds 14 1 with interest. 14 2 LSB 2622XC 76 14 3 jp/cf/24.1
Text: SSB00362 Text: SSB00364 Text: SSB00300 - SSB00399 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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