Senate File 2211 - Introduced
SENATE FILE
BY SHULL
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the establishment of and disbursement from a
2 resident taxpayer rebate fund and including an effective date
3 provision.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 5226ST 81
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PAG LIN
1 1 Section 1. Section 8.54, subsections 5 and 6, Code 2005,
1 2 are amended to read as follows:
1 3 5. For fiscal years in which section 8.55, subsection 2,
1 4 results in moneys being transferred to the general fund, the
1 5 original state general fund expenditure limitation amount
1 6 provided for in subsection 3 shall be readjusted to include
1 7 the moneys which are so transferred.
1 8 6. 5. The scope of the expenditure limitation under
1 9 subsection 3 shall not encompass federal funds, donations,
1 10 constitutionally dedicated moneys, and moneys in expenditures
1 11 from state retirement system moneys, and moneys disbursed from
1 12 the resident taxpayer rebate fund pursuant to section 8.55A.
1 13 Sec. 2. Section 8.55, subsection 2, Code Supplement 2005,
1 14 is amended to read as follows:
1 15 2. a. The maximum balance of the fund is the amount equal
1 16 to two and one=half percent of the adjusted revenue estimate
1 17 for the fiscal year. If the amount of moneys in the Iowa
1 18 economic emergency fund is equal to the maximum balance,
1 19 moneys in excess of this amount shall be transferred to the
1 20 general fund resident taxpayer rebate fund established in
1 21 section 8.55A.
1 22 b. Notwithstanding paragraph "a", any moneys in excess of
1 23 the maximum balance in the economic emergency fund after the
1 24 distribution of the surplus in the general fund of the state
1 25 at the conclusion of each fiscal year shall not be transferred
1 26 to the general fund of the state resident taxpayer rebate fund
1 27 but shall be transferred to the senior living trust fund. The
1 28 total amount transferred, in the aggregate, under this
1 29 paragraph for all fiscal years shall not exceed one hundred
1 30 eighteen million dollars.
1 31 Sec. 3. NEW SECTION. 8.55A RESIDENT TAXPAYER REBATE
1 32 FUND.
1 33 1. A resident taxpayer rebate fund is created in the state
1 34 treasury. The resident taxpayer rebate fund shall be separate
1 35 from the general fund of the state and shall not be considered
2 1 part of the general fund of the state. The moneys in the
2 2 resident taxpayer rebate fund are not subject to section 8.33
2 3 and shall not be transferred, used, obligated, appropriated,
2 4 or otherwise encumbered except as provided in this section.
2 5 Notwithstanding section 12C.7, subsection 2, interest or
2 6 earnings on moneys deposited in the resident taxpayer rebate
2 7 fund shall be credited to the fund. Moneys in the resident
2 8 taxpayer rebate fund may be used for cash flow purposes during
2 9 a fiscal year provided that any moneys so allocated are
2 10 returned to the resident taxpayer rebate fund by the end of
2 11 that fiscal year.
2 12 2. a. There is appropriated for a fiscal year in which
2 13 the fund balance reaches at least fifty million dollars to the
2 14 director of revenue the total sum in the fund to be used as
2 15 provided in paragraph "c".
2 16 b. By October 15 of the fiscal year, the director of
2 17 revenue shall identify individual income taxpayers who were
2 18 residents of the state as of the end of the calendar year
2 19 preceding the fiscal year in which the appropriation in
2 20 paragraph "a" is made.
2 21 c. By November 15 of the fiscal year, the director shall
2 22 issue rebates to each resident taxpayer identified in
2 23 paragraph "b". Each rebate shall be equal to a minimum of
2 24 twenty dollars. Each resident taxpayer shall receive the same
2 25 amount except that married persons filing jointly shall
2 26 receive twice the amount received by a single filer. If the
2 27 balance in the rebate fund is insufficient to provide a rebate
2 28 to each resident taxpayer of the minimum amount, the director
2 29 of revenue shall not provide any rebates during the fiscal
2 30 year.
2 31 3. a. In addition to the appropriation made in subsection
2 32 2, the moneys in the resident taxpayer rebate fund may be used
2 33 for cash flow purposes pursuant to an appropriation made by
2 34 the general assembly. The appropriation shall be made in
2 35 accordance with this subsection only for the fiscal year in
3 1 which the appropriation is made. The moneys shall only be
3 2 appropriated by the general assembly for nonrecurring
3 3 emergency expenditures and shall not be appropriated for
3 4 payment of any collective bargaining agreement or arbitrator's
3 5 decision negotiated or awarded under chapter 20. Except as
3 6 provided in section 8.58, the resident taxpayer rebate fund
3 7 shall be considered a special account for the purposes of
3 8 section 8.53 in determining the cash position of the general
3 9 fund of the state for the payment of state obligations.
3 10 b. Except as provided in subsection 2, an appropriation
3 11 shall not be made from the resident taxpayer rebate fund
3 12 unless the appropriation is in accordance with all of the
3 13 following:
3 14 (1) The appropriation is contained in a bill or joint
3 15 resolution in which the appropriation is the only subject
3 16 matter of the bill or joint resolution.
3 17 (2) The bill or joint resolution states the reasons the
3 18 appropriation is necessary.
3 19 c. In addition to the requirements of paragraph "b", an
3 20 appropriation shall not be made from the resident taxpayer
3 21 rebate fund unless the bill or joint resolution is approved by
3 22 vote of at least two=thirds of the members of both chambers of
3 23 the general assembly and is signed by the governor.
3 24 Sec. 4. Section 8.58, Code 2005, is amended to read as
3 25 follows:
3 26 8.58 EXEMPTION FROM AUTOMATIC APPLICATION.
3 27 To the extent that moneys appropriated under section 8.57
3 28 do not result in moneys being credited to the general fund
3 29 under section 8.55, subsection 2, moneys Moneys appropriated
3 30 under section 8.57 and moneys contained in the cash reserve
3 31 fund, rebuild Iowa infrastructure fund, environment first
3 32 fund, and Iowa economic emergency fund, and resident taxpayer
3 33 rebate fund shall not be considered in the application of any
3 34 formula, index, or other statutory triggering mechanism which
3 35 would affect appropriations, payments, or taxation rates,
4 1 contrary provisions of the Code notwithstanding.
4 2 To the extent that moneys appropriated under section 8.57
4 3 do not result in moneys being credited to the general fund
4 4 under section 8.55, subsection 2, moneys Moneys appropriated
4 5 under section 8.57 and moneys contained in the cash reserve
4 6 fund, rebuild Iowa infrastructure fund, environment first
4 7 fund, and Iowa economic emergency fund, and resident taxpayer
4 8 rebate fund shall not be considered by an arbitrator or in
4 9 negotiations under chapter 20.
4 10 Sec. 5. EFFECTIVE DATE. This Act takes effect January 1,
4 11 2007.
4 12 EXPLANATION
4 13 This bill establishes a resident taxpayer rebate fund.
4 14 Moneys in the economic emergency fund in excess of the limit
4 15 of the fund and after payment of certain amounts to the senior
4 16 living trust fund are to be deposited into the resident
4 17 taxpayer rebate fund. Present law requires such excess to be
4 18 deposited into the state general fund.
4 19 Once the balance of the resident taxpayer rebate fund
4 20 reaches $50 million, the fund is to be rebated to the resident
4 21 income taxpayers determined as of the end of the previous
4 22 year. A minimum of $20 per resident taxpayer is to be
4 23 refunded.
4 24 The bill allows the general assembly to make an
4 25 appropriation for cash flow purposes but only if the
4 26 appropriation is for nonrecurring emergency expenditures, made
4 27 for the fiscal year in which the appropriation is made, is the
4 28 only subject matter of the bill, and is approved by at least
4 29 two=thirds of the members of each house and signed by the
4 30 governor.
4 31 The bill takes effect January 1, 2007.
4 32 LSB 5226ST 81
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