HOUSE FILE _____

BY  (PROPOSED COMMITTEE ON VETERANS AFFAIRS BILL BY CHAIRPERSON CHAMBERS)

A BILL FOR

An Act making a transfer to the veterans trust fund and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  TRANSFER TO VETERANS TRUST FUND.  At the close of the fiscal year beginning July 1, 2011, following the appropriations made to the cash reserve fund pursuant to section 8.57, subsections 1 and 3, and the Iowa economic emergency fund pursuant to section 8.57, subsection 4, and following any transfer made from the Iowa economic emergency fund to the taxpayers trust fund pursuant to section 8.55, subsection 2, paragraph “a”, subparagraph (1), from the excess moneys that remain, an amount sufficient for the balance of the veterans trust fund created in section 35A.13 to reach fifty million dollars, up to the amount of excess moneys that remains, shall be transferred to the veterans trust fund, and any remaining excess shall be transferred to the general fund of the state as provided in section 8.55, subsection 2, paragraph “a”, subparagraph (2).
    Sec. 2.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
   This bill provides for a one-time transfer of moneys from the Iowa economic emergency fund to the veterans trust fund at the close of fiscal year 2011-2012. The bill provides for the transfer to be made after the standing appropriations of the amounts necessary for the cash reserve fund and the Iowa economic emergency fund to each reach their maximum balance.
   Under current law, when the economic emergency fund has reached its maximum balance, the first $60 million of the excess, limited to the difference between the actual net revenue for the general fund of the state for the fiscal year and the adjusted revenue estimate for the fiscal year, is transferred to the taxpayers trust fund. The bill provides that from the excess moneys that remain following the taxpayers trust fund transfer, an amount sufficient for the balance in the veterans trust fund to reach $50 million up to the amount of excess moneys that remains is to be transferred to the veterans trust fund. Any remaining excess is to be transferred to the general fund of the state, as is provided by current law.
   The bill takes effect upon enactment.