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  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
  4 33 mg:nh/je/5.1