HF 363 (LSB 1963YH (4) 85)

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, and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 8.54, subsection 5, Code 2013, is amended to read as follows:
   5.  For fiscal years in which it is anticipated that the distribution
 
there will be a transfer of moneys from the Iowa economic emergency fund in accordance with section 8.55, subsection 2, will result in moneys being transferred to the general fund
 
of the state in accordance with law, the original state general fund expenditure limitation amount provided for in subsection 3 shall be readjusted to include the amount of moneys anticipated to be so transferred.
    Sec. 2.  Section 8.55, subsection 2, paragraph b, Code 2013, is amended to read as follows:
   b.  The
 
Unless otherwise provided by law, the remainder of the excess, if any, shall be transferred to the general fund of the state
 
responsible governing fund.
    Sec. 3.  NEW SECTION.  8.57F  Responsible governing fund.
   1.  A responsible governing fund is created. The fund shall be separate from the general fund of the state and the balance in the fund shall not be considered part of the balance of the general fund of the state. The moneys credited to the fund are not subject to section 8.33 and shall not be transferred, used, obligated, appropriated, or otherwise encumbered except as provided in this section.
   2.  Moneys in the responsible governing fund shall only be used pursuant to appropriations or transfers made by the general assembly for temporary or one-time expenditures to ensure public safety, construct necessary facilities, provide for proper maintenance of public property, or provide transitional funding of a public service. In addition, the moneys may be used to restore an amount of a standing appropriation from the general fund of the state that was subject to a reduction from the amount specified in law due to an exception that was applied for the fiscal year preceding the fiscal year of the restoration.
   3.
  a.  Moneys in the responsible governing fund may be used for cash flow purposes during a fiscal year provided that any moneys so allocated are returned to the fund by the end of that fiscal year.
   b.  Except as provided in section 8.58, the responsible governing fund shall be considered a special account for the purposes of section 8.53 in determining the cash position of the general fund of the state for the payment of state obligations.
   4.  Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys deposited in the responsible governing fund shall be credited to the fund.
    Sec. 4.  Section 8.58, Code 2013, is amended to read as follows:
   8.58  Exemption from automatic application.
   1.  To the extent that moneys appropriated under section 8.57 do not result in moneys being credited to the general fund under section 8.55, subsection 2
 
of the state, moneys appropriated under section 8.57 and moneys contained in the cash reserve fund, rebuild Iowa infrastructure fund, environment first fund, Iowa economic emergency fund, and taxpayers trust fund, and responsible governing fund shall not be considered in the application of any formula, index, or other statutory triggering mechanism which would affect appropriations, payments, or taxation rates, contrary provisions of the Code notwithstanding.
   2.  To the extent that moneys appropriated under section 8.57 do not result in moneys being credited to the general fund under section 8.55, subsection 2
 
of the state, moneys appropriated under section 8.57 and moneys contained in the cash reserve fund, rebuild Iowa infrastructure fund, environment first fund, Iowa economic emergency fund, and taxpayers trust fund, and responsible governing fund shall not be considered by an arbitrator or in negotiations under chapter 20.
    Sec. 5.  APPLICABILITY.  This Act applies to moneys credited to the Iowa economic emergency fund for fiscal years beginning on or after July 1, 2014.
EXPLANATION
   This bill creates a responsible governing fund in new Code section 8.57F and makes transfers to the fund.
   The new fund is separate from the general fund of the state and interest or earnings on moneys in the fund are credited to the fund. Moneys in the fund may be used temporarily for cash flow purposes. Otherwise, moneys in the fund can be used only as provided by appropriations or transfers made by the general assembly for temporary or one-time expenditures to ensure public safety, construct necessary facilities, provide for proper maintenance of public property, or provide transitional funding of a public service. In addition, the moneys may be used to restore an amount of a standing appropriation from the general fund of the state that was subject to a reduction from the amount specified in law due to an exception that was applied for the fiscal year preceding the fiscal year of the restoration.
   Under current law in Code section 8.55, relating to the Iowa economic emergency fund, when the fund reaches its maximum balance, a formula provides for transfer of up to $60 million of the excess to the taxpayers trust fund and the remaining excess is transferred to the general fund of the state. The bill transfers the remaining excess to the new fund instead of the general fund, unless otherwise provided by law.
   The Code section 8.55 requirement to transfer the remaining excess from the Iowa economic emergency fund to the general fund is addressed in the Code section 8.54 requirement to readjust the state general fund expenditure limitation to include the amount anticipated to be transferred. The bill revises the requirement to only apply the readjustment when there is a transfer of the excess to the general fund provided for by law.
   Code section 8.58 is amended to include the new fund in the list of reserve funds that are not considered in the application of any formula, index, or other statutory triggering mechanism which would affect appropriations, payments, or taxation rates, or by an arbitrator or in public employee collective bargaining negotiations under Code chapter 20.
   The bill applies to moneys credited to the Iowa economic emergency fund for fiscal years beginning on or after July 1, 2014.