House File 2169

                                       HOUSE FILE       
                                       BY  WISE, STRUYK, HOGG,
                                           and DANDEKAR


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

                                      A BILL FOR

  1 An Act increasing the maximum balance of the Iowa economic
  2    emergency fund and providing a contingent effective date.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 5737HH 80
  5 jp/sh/8

PAG LIN

  1  1    Section 1.  Section 8.55, subsection 2, paragraph a, as
  1  2 enacted by 2002 Iowa Acts, Second Extraordinary Session,
  1  3 chapter 1001, section 25, and as made effective by 2003 Iowa
  1  4 Acts, chapter 179, section 40, is amended to read as follows:
  1  5    a.  The maximum balance of the fund is the amount equal to
  1  6 two and one=half five percent of the adjusted revenue estimate
  1  7 for the fiscal year.  If the amount of moneys in the Iowa
  1  8 economic emergency fund is equal to the maximum balance,
  1  9 moneys in excess of this amount shall be transferred to the
  1 10 general fund.
  1 11    Sec. 2.  CONTINGENT EFFECTIVE DATE.  This Act takes effect
  1 12 on July 1 of the fiscal year immediately following the fiscal
  1 13 year in which all transfers have been made from the Iowa
  1 14 economic emergency fund, as required by section 8.55,
  1 15 subsection 2, paragraphs "b", "c", and "d".  The director of
  1 16 the department of management shall notify the Iowa Code editor
  1 17 when the transfers have been made.
  1 18                           EXPLANATION
  1 19    This bill increases the maximum balance of the Iowa
  1 20 economic emergency fund.
  1 21    Under current law, effective July 1, 2004, the maximum
  1 22 balance of the Iowa economic emergency fund is reduced from 5
  1 23 percent to 2.5 percent of the adjusted revenue estimate for
  1 24 the fiscal year.  A corresponding increase to the maximum
  1 25 balance of the cash reserve fund takes effect on the same
  1 26 date.  The bill restores the maximum balance of the Iowa
  1 27 economic emergency fund to 5 percent of the adjusted revenue
  1 28 estimate for the fiscal year.  The bill has a contingent
  1 29 effective date for the change to take effect when required
  1 30 transfers from the economic emergency fund have been
  1 31 completed.  The transfers are required to be made to the
  1 32 endowment for Iowa's health account of the tobacco settlement
  1 33 trust fund and the senior living trust fund.  The director of
  1 34 the department of management is required to notify the Iowa
  1 35 Code editor when the transfers have been made.
  2  1 LSB 5737HH 80
  2  2 jp/sh/8