SENATE FILE 140

BY  HOGG

A BILL FOR

An Act authorizing a contingent appropriation from the Iowa economic emergency fund and the cash reserve fund.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 8.55, subsection 3, paragraph a, Code 2011, is amended to read as follows:
   a.  Except as provided in paragraphs “b”, “0c”, and “c”, the moneys in the Iowa economic emergency fund shall only be used pursuant to an appropriation made by the general assembly. An appropriation shall only be made for the fiscal year in which the appropriation is made. The moneys shall only be appropriated by the general assembly for emergency expenditures.
   Sec. 2.  Section 8.55, subsection 3, Code 2011, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  0c.  There is appropriated from the Iowa economic emergency fund to the general fund of the state an amount sufficient to reduce or prevent an overdraft on or deficit in the general fund of the state for the fiscal year in which the appropriation is made. The appropriation made in this paragraph shall not exceed an amount equal to ten percent of the combined unobligated and unencumbered balances in the Iowa economic emergency fund and the cash reserve fund on the date the appropriation is made or one hundred million dollars, whichever is less, and is contingent upon all of the following having occurred:
   (1)  The governor projects that the appropriation is necessary to preclude implementation of or to reduce the amount of the uniform reductions in appropriations otherwise required pursuant to section 8.31 to prevent an overdraft on or deficit in the general fund of the state.
   (2)  The governor projects that without the appropriation, the balance of the general fund of the state at the close of the fiscal year will be negative.
   (3)  The general assembly is not in regular or extraordinary session.
   (4)  The governor has issued an official proclamation and has notified the co-chairpersons of the fiscal committee of the legislative council and the legislative services agency verifying the contingencies addressed in subparagraphs (1) through (3) and outlining the reasons why the appropriation authorized in this paragraph“0c” is necessary to prevent an overdraft on or deficit in the general fund of the state. The appropriation amount shall be identified in the proclamation. The effective date of the appropriation is the date the proclamation is published in the Iowa administrative bulletin.
   If the balance in the Iowa economic emergency fund is insufficient to fund the entire amount of the appropriation made pursuant to this paragraph “0c”, there is transferred from the cash reserve fund to the Iowa economic emergency fund the amount of the insufficiency.
EXPLANATION
   This bill authorizes a contingent appropriation from the Iowa economic emergency fund and the cash reserve fund.
   The bill amends the Iowa economic emergency fund provisions in Code section 8.55 to authorize a new contingent appropriation of up to 10 percent of the available combined balances of the Iowa economic emergency fund and the cash reserve fund or $100 million, whichever is less, to the general fund of the state. An existing contingent appropriation for a similar purpose may only be made at the close of the fiscal year. The new appropriation is contingent upon the following: the governor projecting that the appropriation is necessary to preclude the governor from ordering an across-the-board appropriation reduction in accordance with Code section 8.31, the governor projecting that without the appropriation the balance of the general fund will be negative at the close of the fiscal year, the general assembly is not in regular or extraordinary session, and the governor verifies these contingencies in an official proclamation which states the reasons why the appropriation is necessary to prevent an overdraft on or deficit in the general fund of the state.
   The proclamation is required to identify the amount of the appropriation and the appropriation takes effect on the date the proclamation is published in the Iowa administrative bulletin.
   If the balance in the Iowa economic emergency fund is insufficient to fund the entire amount of the contingent appropriation, the bill provides for a transfer from the cash reserve fund to the Iowa economic emergency fund in the amount of the insufficiency.