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 6 mg/je/5 PAG LIN 1 1 Section 1. Section 8.54, subsections 5 and 6, Code 2005, 1 2 are amended to read as follows: 1 35. 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 86.5. The scope of the expenditure limitation under 1 9 subsection 3 shall not encompass federal funds, donations, 1 10 constitutionally dedicated moneys,andmoneys 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 20general fundresident 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 thegeneral fund of the stateresident 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 27To 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, moneysMoneys 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,andIowa 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 2To 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, moneysMoneys 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,andIowa 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 4 33 mg:nh/je/5.1