House File 363 - Introduced HOUSE FILE 363 BY WESSEL-KROESCHELL , LENSING , LUNDBY , ANDERSON , KEARNS , RUFF , HEDDENS , OURTH , HUNTER , MASCHER , ABDUL-SAMAD , STAED , FORBES , STECKMAN , and MUHLBAUER A BILL FOR An Act creating a responsible governing fund, making transfers, 1 and including applicability provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1963YH (4) 85 jp/sc

H.F. 363 Section 1. Section 8.54, subsection 5, Code 2013, is amended 1 to read as follows: 2 5. For fiscal years in which it is anticipated that the 3 distribution there will be a transfer of moneys from the Iowa 4 economic emergency fund in accordance with section 8.55, 5 subsection 2 , will result in moneys being transferred to the 6 general fund of the state in accordance with law , the original 7 state general fund expenditure limitation amount provided for 8 in subsection 3 shall be readjusted to include the amount of 9 moneys anticipated to be so transferred. 10 Sec. 2. Section 8.55, subsection 2, paragraph b, Code 2013, 11 is amended to read as follows: 12 b. The Unless otherwise provided by law, the remainder of 13 the excess, if any, shall be transferred to the general fund of 14 the state responsible governing fund . 15 Sec. 3. NEW SECTION . 8.57F Responsible governing fund. 16 1. A responsible governing fund is created. The fund shall 17 be separate from the general fund of the state and the balance 18 in the fund shall not be considered part of the balance of the 19 general fund of the state. The moneys credited to the fund 20 are not subject to section 8.33 and shall not be transferred, 21 used, obligated, appropriated, or otherwise encumbered except 22 as provided in this section. 23 2. Moneys in the responsible governing fund shall only 24 be used pursuant to appropriations or transfers made by 25 the general assembly for temporary or one-time expenditures 26 to ensure public safety, construct necessary facilities, 27 provide for proper maintenance of public property, or provide 28 transitional funding of a public service. In addition, 29 the moneys may be used to restore an amount of a standing 30 appropriation from the general fund of the state that was 31 subject to a reduction from the amount specified in law due to 32 an exception that was applied for the fiscal year preceding the 33 fiscal year of the restoration. 34 3. a. Moneys in the responsible governing fund may be used 35 -1- LSB 1963YH (4) 85 jp/sc 1/ 4

H.F. 363 for cash flow purposes during a fiscal year provided that any 1 moneys so allocated are returned to the fund by the end of that 2 fiscal year. 3 b. Except as provided in section 8.58, the responsible 4 governing fund shall be considered a special account for the 5 purposes of section 8.53 in determining the cash position 6 of the general fund of the state for the payment of state 7 obligations. 8 4. Notwithstanding section 12C.7, subsection 2, interest or 9 earnings on moneys deposited in the responsible governing fund 10 shall be credited to the fund. 11 Sec. 4. Section 8.58, Code 2013, is amended to read as 12 follows: 13 8.58 Exemption from automatic application. 14 1. To the extent that moneys appropriated under section 15 8.57 do not result in moneys being credited to the general 16 fund under section 8.55, subsection 2 of the state , moneys 17 appropriated under section 8.57 and moneys contained in 18 the cash reserve fund, rebuild Iowa infrastructure fund, 19 environment first fund, Iowa economic emergency fund, and 20 taxpayers trust fund , and responsible governing fund shall 21 not be considered in the application of any formula, index, 22 or other statutory triggering mechanism which would affect 23 appropriations, payments, or taxation rates, contrary 24 provisions of the Code notwithstanding. 25 2. To the extent that moneys appropriated under section 26 8.57 do not result in moneys being credited to the general 27 fund under section 8.55, subsection 2 of the state , moneys 28 appropriated under section 8.57 and moneys contained in 29 the cash reserve fund, rebuild Iowa infrastructure fund, 30 environment first fund, Iowa economic emergency fund, and 31 taxpayers trust fund , and responsible governing fund shall not 32 be considered by an arbitrator or in negotiations under chapter 33 20 . 34 Sec. 5. APPLICABILITY. This Act applies to moneys credited 35 -2- LSB 1963YH (4) 85 jp/sc 2/ 4

H.F. 363 to the Iowa economic emergency fund for fiscal years beginning 1 on or after July 1, 2014. 2 EXPLANATION 3 This bill creates a responsible governing fund in new Code 4 section 8.57F and makes transfers to the fund. 5 The new fund is separate from the general fund of the state 6 and interest or earnings on moneys in the fund are credited to 7 the fund. Moneys in the fund may be used temporarily for cash 8 flow purposes. Otherwise, moneys in the fund can be used only 9 as provided by appropriations or transfers made by the general 10 assembly for temporary or one-time expenditures to ensure 11 public safety, construct necessary facilities, provide for 12 proper maintenance of public property, or provide transitional 13 funding of a public service. In addition, the moneys may be 14 used to restore an amount of a standing appropriation from 15 the general fund of the state that was subject to a reduction 16 from the amount specified in law due to an exception that was 17 applied for the fiscal year preceding the fiscal year of the 18 restoration. 19 Under current law in Code section 8.55, relating to the Iowa 20 economic emergency fund, when the fund reaches its maximum 21 balance, a formula provides for transfer of up to $60 million 22 of the excess to the taxpayers trust fund and the remaining 23 excess is transferred to the general fund of the state. The 24 bill transfers the remaining excess to the new fund instead of 25 the general fund, unless otherwise provided by law. 26 The Code section 8.55 requirement to transfer the remaining 27 excess from the Iowa economic emergency fund to the general 28 fund is addressed in the Code section 8.54 requirement to 29 readjust the state general fund expenditure limitation to 30 include the amount anticipated to be transferred. The bill 31 revises the requirement to only apply the readjustment when 32 there is a transfer of the excess to the general fund provided 33 for by law. 34 Code section 8.58 is amended to include the new fund 35 -3- LSB 1963YH (4) 85 jp/sc 3/ 4

H.F. 363 in the list of reserve funds that are not considered in 1 the application of any formula, index, or other statutory 2 triggering mechanism which would affect appropriations, 3 payments, or taxation rates, or by an arbitrator or in public 4 employee collective bargaining negotiations under Code chapter 5 20. 6 The bill applies to moneys credited to the Iowa economic 7 emergency fund for fiscal years beginning on or after July 1, 8 2014. 9 -4- LSB 1963YH (4) 85 jp/sc 4/ 4