House File 2346 - Introduced HOUSE FILE 2346 BY J. TAYLOR , KLEIN , HEIN , DE BOEF , MOORE , PAUSTIAN , QUIRK , SCHULTZ , GRASSLEY , WINDSCHITL , and HAGER A BILL FOR An Act relating to funding for projects on roads and bridges 1 in critical need of repair or maintenance, and making an 2 appropriation. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5785YH (3) 84 dea/nh

H.F. 2346 Section 1. Section 8.55, subsection 2, paragraph a, Code 1 Supplement 2011, is amended to read as follows: 2 a. The maximum balance of the fund is the amount equal to 3 two and one-half percent of the adjusted revenue estimate for 4 the fiscal year. If the amount of moneys in the Iowa economic 5 emergency fund is equal to the maximum balance, moneys in 6 excess of this amount shall be distributed as follows: 7 (1) The first sixty million dollars of the difference 8 between the actual net revenue for the general fund of the 9 state for the fiscal year and the adjusted revenue estimate for 10 the fiscal year shall be transferred to the taxpayers trust 11 fund. 12 (2) Moneys in excess of the amount transferred under 13 subparagraph (1), up to a maximum amount of sixty million 14 dollars, shall be transferred to the critical needs road fund 15 created under section 312B.1. 16 (2) (3) The remainder of the excess, if any, shall be 17 transferred to the general fund of the state. 18 Sec. 2. Section 8.58, Code Supplement 2011, is amended to 19 read as follows: 20 8.58 Exemption from automatic application. 21 1. To the extent that moneys appropriated under section 22 8.57 do not result in moneys being credited to the general fund 23 under section 8.55, subsection 2 , moneys appropriated under 24 section 8.57 and moneys contained in the cash reserve fund, 25 rebuild Iowa infrastructure fund, environment first fund, Iowa 26 economic emergency fund, and taxpayers trust fund , and critical 27 needs road fund shall not be considered in the application of 28 any formula, index, or other statutory triggering mechanism 29 which would affect appropriations, payments, or taxation rates, 30 contrary provisions of the Code notwithstanding. 31 2. To the extent that moneys appropriated under section 32 8.57 do not result in moneys being credited to the general fund 33 under section 8.55, subsection 2 , moneys appropriated under 34 section 8.57 and moneys contained in the cash reserve fund, 35 -1- LSB 5785YH (3) 84 dea/nh 1/ 3

H.F. 2346 rebuild Iowa infrastructure fund, environment first fund, Iowa 1 economic emergency fund, and taxpayers trust fund , and critical 2 needs road fund shall not be considered by an arbitrator or in 3 negotiations under chapter 20 . 4 Sec. 3. NEW SECTION . 312B.1 Critical needs road fund. 5 1. A critical needs road fund is created in the state 6 treasury under the control of the department of transportation. 7 The fund shall be separate from the general fund of the state 8 and the balance in the fund shall not be considered part of 9 the balance of the general fund of the state. The fund shall 10 consist of moneys appropriated by the general assembly and any 11 revenues credited by law to the critical needs road fund. The 12 moneys in the fund are not subject to section 8.33 and shall 13 not be transferred, used, obligated, appropriated, or otherwise 14 encumbered except as provided in this section. Notwithstanding 15 section 12C.7, subsection 2, interest or earnings on moneys 16 deposited in the critical needs road fund shall be credited to 17 the fund. 18 2. Moneys in the critical needs road fund are appropriated 19 to the department of transportation to be used as directed 20 by the department exclusively for the repair and maintenance 21 of roads on the primary or secondary road system, or the 22 municipal street system, including bridges. The department 23 shall establish guidelines for identifying roads and bridges 24 in critical need of repair or maintenance and for prioritizing 25 projects to receive funding under this section. Moneys 26 distributed from the critical needs road fund may be used 27 in combination with other available funding as necessary to 28 accomplish the completion of a qualifying project and to 29 accomplish the goal of reducing the number of Iowa roads and 30 bridges with critical needs. 31 EXPLANATION 32 This bill establishes a critical needs road fund in the state 33 treasury under the control of the department of transportation. 34 Moneys in the fund are appropriated to the department to be 35 -2- LSB 5785YH (3) 84 dea/nh 2/ 3

H.F. 2346 used exclusively for repair and maintenance of state and 1 local roads. The department is authorized to direct the 2 use of the fund’s resources according to guidelines to be 3 established by the department for identifying roads and bridges 4 in critical need of repair or maintenance and for prioritizing 5 critical needs projects. Moneys from the fund may be used in 6 combination with other available funding. 7 The bill provides that if the economic emergency fund 8 reaches the maximum balance, after the required transfer of a 9 portion of the excess to the taxpayers trust fund and before 10 any remaining excess is transferred to the general fund of the 11 state, any excess moneys in an amount up to $60 million shall 12 be transferred to the critical needs road fund. 13 -3- LSB 5785YH (3) 84 dea/nh 3/ 3