SENATE FILE 18

BY  HOGG

A BILL FOR

An Act increasing the maximum balance authorized for the Iowa economic emergency fund.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 8.55, subsection 2, paragraph a, Code 2011, is amended to read as follows:
   a.  The maximum balance of the fund is the amount equal to two seven 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 fund.
EXPLANATION
   This bill increases the maximum balance authorized for the Iowa economic emergency fund in Code section 8.55 from 2.5 percent to 7.5 percent of the adjusted revenue estimate for the fiscal year.
   The term, “adjusted revenue estimate” is defined in Code section 8.54 to mean the appropriate revenue estimate for the general fund for the following fiscal year as determined by the revenue estimating conference, adjusted by subtracting estimated tax refunds payable from that estimated revenue and as determined by the conference, adding any new revenues which may be considered to be eligible for deposit in the general fund.