Senate File 140 - Introduced SENATE FILE 140 BY HOGG A BILL FOR An Act authorizing a contingent appropriation from the Iowa 1 economic emergency fund and the cash reserve fund. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1493XS (4) 84 jp/rj

S.F. 140 Section 1. Section 8.55, subsection 3, paragraph a, Code 1 2011, is amended to read as follows: 2 a. Except as provided in paragraphs “b” , “0c” , and “c” , 3 the moneys in the Iowa economic emergency fund shall only 4 be used pursuant to an appropriation made by the general 5 assembly. An appropriation shall only be made for the fiscal 6 year in which the appropriation is made. The moneys shall 7 only be appropriated by the general assembly for emergency 8 expenditures. 9 Sec. 2. Section 8.55, subsection 3, Code 2011, is amended by 10 adding the following new paragraph: 11 NEW PARAGRAPH . 0c. There is appropriated from the Iowa 12 economic emergency fund to the general fund of the state an 13 amount sufficient to reduce or prevent an overdraft on or 14 deficit in the general fund of the state for the fiscal year 15 in which the appropriation is made. The appropriation made in 16 this paragraph shall not exceed an amount equal to ten percent 17 of the combined unobligated and unencumbered balances in the 18 Iowa economic emergency fund and the cash reserve fund on the 19 date the appropriation is made or one hundred million dollars, 20 whichever is less, and is contingent upon all of the following 21 having occurred: 22 (1) The governor projects that the appropriation is 23 necessary to preclude implementation of or to reduce the amount 24 of the uniform reductions in appropriations otherwise required 25 pursuant to section 8.31 to prevent an overdraft on or deficit 26 in the general fund of the state. 27 (2) The governor projects that without the appropriation, 28 the balance of the general fund of the state at the close of the 29 fiscal year will be negative. 30 (3) The general assembly is not in regular or extraordinary 31 session. 32 (4) The governor has issued an official proclamation and 33 has notified the co-chairpersons of the fiscal committee of 34 the legislative council and the legislative services agency 35 -1- LSB 1493XS (4) 84 jp/rj 1/ 3

S.F. 140 verifying the contingencies addressed in subparagraphs (1) 1 through (3) and outlining the reasons why the appropriation 2 authorized in this paragraph “0c” is necessary to prevent an 3 overdraft on or deficit in the general fund of the state. The 4 appropriation amount shall be identified in the proclamation. 5 The effective date of the appropriation is the date the 6 proclamation is published in the Iowa administrative bulletin. 7 If the balance in the Iowa economic emergency fund is 8 insufficient to fund the entire amount of the appropriation 9 made pursuant to this paragraph “0c” , there is transferred from 10 the cash reserve fund to the Iowa economic emergency fund the 11 amount of the insufficiency. 12 EXPLANATION 13 This bill authorizes a contingent appropriation from the 14 Iowa economic emergency fund and the cash reserve fund. 15 The bill amends the Iowa economic emergency fund 16 provisions in Code section 8.55 to authorize a new contingent 17 appropriation of up to 10 percent of the available combined 18 balances of the Iowa economic emergency fund and the cash 19 reserve fund or $100 million, whichever is less, to the general 20 fund of the state. An existing contingent appropriation for 21 a similar purpose may only be made at the close of the fiscal 22 year. The new appropriation is contingent upon the following: 23 the governor projecting that the appropriation is necessary 24 to preclude the governor from ordering an across-the-board 25 appropriation reduction in accordance with Code section 8.31, 26 the governor projecting that without the appropriation the 27 balance of the general fund will be negative at the close 28 of the fiscal year, the general assembly is not in regular 29 or extraordinary session, and the governor verifies these 30 contingencies in an official proclamation which states the 31 reasons why the appropriation is necessary to prevent an 32 overdraft on or deficit in the general fund of the state. 33 The proclamation is required to identify the amount of 34 the appropriation and the appropriation takes effect on the 35 -2- LSB 1493XS (4) 84 jp/rj 2/ 3

S.F. 140 date the proclamation is published in the Iowa administrative 1 bulletin. 2 If the balance in the Iowa economic emergency fund is 3 insufficient to fund the entire amount of the contingent 4 appropriation, the bill provides for a transfer from the cash 5 reserve fund to the Iowa economic emergency fund in the amount 6 of the insufficiency. 7 -3- LSB 1493XS (4) 84 jp/rj 3/ 3