SF 2294 (LSB 6069SV (2) 83)

SENATE FILE 2294

BY  COMMITTEE ON REBUILD IOWA

(SUCCESSOR TO SSB 3196)

A BILL FOR

An Act creating a disaster recovery fund and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 8.55, subsection 2, paragraph a, Code 2009, is amended to read as follows:
   a.  The maximum balance of the fund is the amount equal to two and one-half percent of the adjusted revenue estimate for the fiscal year. If the amount of moneys in the Iowa economic emergency fund is equal to the maximum balance, moneys in excess of this amount shall be transferred to the general disaster recovery fund created in section 8.56A.
    Sec. 2.  NEW SECTION.  8.56A  Disaster recovery fund.
   1.  A disaster recovery fund is created. The fund shall be separate from the general fund of the state and the balance in the fund shall not be considered part of the balance of the general fund of the state. The moneys credited to the fund are not subject to section 8.33, and shall not be transferred, used, obligated, appropriated, or otherwise encumbered except as provided in this section.
   2.  The maximum balance of the fund is the amount equal to ten percent of the adjusted revenue estimate for the fiscal year. If the amount of moneys in the disaster recovery fund is equal to the maximum balance, moneys in excess of this amount shall be transferred to the general fund of the state.
   3.  Except as authorized in subsection 4, moneys in the fund shall only be used pursuant to an appropriation made by the general assembly for purposes of disaster relief and recovery. In order to become law, the bill or joint resolution containing the appropriation must be approved by vote of at least three-fifths of the members of both chambers of the general assembly and signed by the governor.
   4.  a.  Moneys in the fund may be used for cash flow purposes during a fiscal year provided that any moneys so allocated are returned to the fund by the end of that fiscal year.
   b.  Except as provided in section 8.58, the disaster recovery fund shall be considered a special account for the purposes of section 8.53 in determining the cash position of the general fund of the state for the payment of state obligations.
   5.  Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys deposited in the disaster recovery fund shall be credited to the fund. Such credited moneys, if appropriated, may be used for the expenses of providing ongoing training and staffing for disaster response and recovery by the department of human services, department of economic development, Iowa finance authority, or division of homeland security and emergency management of the department of public safety.
    Sec. 3.  Section 8.58, Code 2009, is amended to read as follows:
   8.58  Exemption from automatic application.
   1.  To the extent that moneys appropriated under section 8.57 do not result in moneys being credited to the general fund under section 8.55, subsection 2, moneys appropriated under section 8.57 and moneys contained in the cash reserve fund, rebuild Iowa infrastructure fund, environment first fund, disaster recovery fund, and Iowa economic emergency fund shall not be considered in the application of any formula, index, or other statutory triggering mechanism which would affect appropriations, payments, or taxation rates, contrary provisions of the Code notwithstanding.
   2.  To the extent that moneys appropriated under section 8.57 do not result in moneys being credited to the general fund under section 8.55, subsection 2, moneys appropriated under section 8.57 and moneys contained in the cash reserve fund, rebuild Iowa infrastructure fund, environment first fund, disaster recovery fund, and Iowa economic emergency fund shall not be considered by an arbitrator or in negotiations under chapter 20.
    Sec. 4.  EFFECTIVE UPON ENACTMENT AND APPLICABILITY.  This Act, being deemed of immediate importance, takes effect upon enactment and is applicable to moneys transferred from the Iowa economic emergency fund pursuant to section 8.55, subsection 2, paragraph “a”, as amended by this Act, beginning with the close of the fiscal year ending on June 30, 2010.
EXPLANATION
   This bill creates a disaster recovery fund in new Code section 8.56A.
   Under current state financing law, surplus state general fund moneys are first credited to the cash reserve until it reaches its maximum balance equal to 7.5 percent of the adjusted revenue estimate for the applicable fiscal year, then surplus moneys are credited to the Iowa economic emergency fund until it reaches its maximum balance equal to 2.5 percent of the adjusted revenue estimate. The bill provides for the surplus moneys to flow to the disaster recovery fund once the first two funds have reached the maximum balance. Under current law, the surplus funding is transferred to the general fund of the state. The bill provides that if the disaster recovery fund reaches its maximum balance equal to 10 percent of the adjusted revenue estimate, surplus moneys then flow to the general fund.
   Moneys credited to the new fund may only be used pursuant to an appropriation made for purposes of disaster relief and recovery but are otherwise not subject to transfer, use, obligation, appropriation, or other encumbrance except for disaster relief and recovery. However, during the course of a fiscal year moneys in the fund may be used for cash flow purposes provided that any moneys so allocated are returned to the fund by the end of that fiscal year. In order for an appropriation to become law it must be approved by a vote of at least three-fifths of the members of each chamber and approved by the governor.
   Interest or earnings on moneys in the fund are retained by the fund instead of the general fund as otherwise provided in Code section 12C.7. These retained moneys may be appropriated for training and staffing of disaster and recovery functions of the state agencies listed in the bill as providing those functions.
   Code section 8.58 is amended to include the disaster recovery fund in the list of various reserve funds that are exempted from being considered to be available for any formula, index, or other statutory triggering mechanism which would affect appropriations, payments, or taxation rates or being considered by an arbitrator or in negotiations under Code chapter 20, relating to public employee collective bargaining.
   The bill takes effect upon enactment and applies to transfers of surplus moneys from the Iowa economic emergency fund beginning with the close of the fiscal year ending on June 30, 2010.