H.F. 648 DIVISION I 1 STATE BOND REPAYMENT FUND 2 Section 1. STATE BOND REPAYMENT FUND —— TAXPAYERS TRUST 3 FUND. Notwithstanding section 8.55, subsection 2, paragraph 4 “b”, if the Iowa economic emergency fund reaches its maximum 5 balance in the fiscal year beginning July 1, 2013, after the 6 designated portion of the excess moneys is transferred to the 7 taxpayers trust fund pursuant to section 8.55, subsection 2, 8 paragraph “a”, the next $113,800,000 is transferred to the 9 state bond repayment fund created by this Act. Any excess 10 remaining after the transfer to the state bond repayment fund 11 is transferred to the taxpayers trust fund. 12 Sec. 2. NEW SECTION . 8.57F State bond repayment fund. 13 1. a. The state bond repayment fund is created. The 14 fund shall be separate from the general fund of the state and 15 the balance in the fund shall not be considered part of the 16 balance of the general fund of the state. The moneys credited 17 to the fund are not subject to section 8.33 and shall not 18 be transferred, used, obligated, appropriated, or otherwise 19 encumbered except as provided in this section. 20 b. Moneys in the fund shall only be used for the defeasance 21 or redemption of outstanding obligations of state-issued 22 revenue bonds that have a debt service paid by a dedicated 23 revenue source. 24 c. Moneys in the fund may be used for cash flow purposes 25 during a fiscal year provided that any moneys so allocated are 26 returned to the fund by the end of that fiscal year. 27 d. Except as provided in section 8.58, the fund shall be 28 considered a special account for the purposes of section 8.53 29 in determining the cash position of the general fund of the 30 state for the payment of state obligations. 31 2. The moneys credited to the fund for the fiscal year 32 beginning July 1, 2013, are appropriated to the treasurer of 33 state to defease or redeem the following state bonds in lieu 34 of the revenue source otherwise designated by law for payment 35 -1- LSB 2538HV (2) 85 tm/jp 1/ 8

H.F. 648 of the bonds: 1 a. The school infrastructure program bonds issued pursuant 2 to sections 12.81 through 12.86. 3 b. The Iowa jobs program bonds issued pursuant to section 4 12.87, subsection 1, paragraph “b” , subparagraph (3). 5 c. In conjunction with the Iowa finance authority, the 6 prison infrastructure revenue bonds issued pursuant to section 7 16.177. 8 d. In conjunction with the honey creek premier destination 9 park authority, the premier destination park bonds issued 10 pursuant to section 463C.12. 11 Sec. 3. 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 fund 16 under section 8.55, subsection 2 , moneys appropriated under 17 section 8.57 and moneys contained in the cash reserve fund, 18 rebuild Iowa infrastructure fund, environment first fund, Iowa 19 economic emergency fund, and taxpayers trust fund , and state 20 bond repayment fund shall not be considered in the application 21 of any formula, index, or other statutory triggering mechanism 22 which would affect appropriations, payments, or taxation rates, 23 contrary provisions of the Code notwithstanding. 24 2. To the extent that moneys appropriated under section 25 8.57 do not result in moneys being credited to the general fund 26 under section 8.55, subsection 2 , moneys appropriated under 27 section 8.57 and moneys contained in the cash reserve fund, 28 rebuild Iowa infrastructure fund, environment first fund, Iowa 29 economic emergency fund, and taxpayers trust fund , and state 30 bond repayment fund shall not be considered by an arbitrator or 31 in negotiations under chapter 20 . 32 Sec. 4. EFFECTIVE UPON ENACTMENT —— APPLICABILITY. 33 1. This division of this Act, being deemed of immediate 34 importance, takes effect upon enactment. 35 -2- LSB 2538HV (2) 85 tm/jp 2/ 8

H.F. 648 2. The section of this division of this Act providing for 1 transfer of moneys from the Iowa economic emergency fund to 2 the state bond repayment fund instead of the general fund of 3 the state applies to transfers made from the Iowa economic 4 emergency fund after the effective date of this division of 5 this Act and the state general fund expenditure limitation 6 calculated for the fiscal year beginning July 1, 2013, shall 7 be adjusted accordingly. 8 DIVISION II 9 PUBLIC RETIREMENT SYSTEMS 10 Sec. 5. JUDICIAL RETIREMENT FUND. There is transferred from 11 the general fund of the state to the judicial retirement fund 12 described in section 602.9104, for the fiscal year beginning 13 July 1, 2012, and ending June 30, 2013, an amount equal to 14 $18,900,000. 15 Sec. 6. PEACE OFFICERS’ RETIREMENT, ACCIDENT, AND 16 DISABILITY SYSTEM RETIREMENT FUND. There is transferred 17 from the general fund of the state to the peace officers’ 18 retirement, accident, and disability system retirement fund 19 described in section 97A.8, for the fiscal year beginning 20 July 1, 2012, and ending June 30, 2013, an amount equal to 21 $91,300,000. 22 Sec. 7. EFFECTIVE UPON ENACTMENT. This division of this 23 Act, being deemed of immediate importance, takes effect upon 24 enactment. 25 DIVISION III 26 MISCELLANEOUS APPROPRIATIONS 27 Sec. 8. UNI —— ADVANCED MANUFACTURING EQUIPMENT. There 28 is appropriated from the general fund of the state to the 29 university of northern Iowa for the fiscal year beginning July 30 1, 2012, and ending June 30, 2013, the following amount, or 31 so much thereof as is necessary, to be used for the purposes 32 designated: 33 For purposes of improving the economic growth of the state 34 by the purchase of advanced manufacturing equipment at cedar 35 -3- LSB 2538HV (2) 85 tm/jp 3/ 8

H.F. 648 valley techworks: 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000 2 Sec. 9. UNI —— FUNDING. There is appropriated from the 3 general fund of the state to the university of northern Iowa 4 for the fiscal year beginning July 1, 2012, and ending June 30, 5 2013, the following amount, or so much thereof as is necessary, 6 to be used for the purposes designated: 7 For funding issues related to high enrollment by in-state 8 students: 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,000,000 10 Notwithstanding section 8.33, moneys appropriated in this 11 section that remain unencumbered or unobligated at the close of 12 a fiscal year shall not revert but shall remain available for 13 expenditure for the purposes designated until June 30, 2015. 14 Sec. 10. ISU —— BIOECONOMY INITIATIVE. There is 15 appropriated from the general fund of the state to Iowa state 16 university of science and technology for the fiscal year 17 beginning July 1, 2012, and ending June 30, 2013, the following 18 amount, or so much thereof as is necessary, to be used for the 19 purposes designated: 20 For implementing the bioeconomy initiative: 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,500,000 22 The appropriation in this section is in lieu of the 23 appropriation made for the same purpose in 2013 Iowa Acts, 24 Senate File 430, if enacted. 25 Sec. 11. ISU —— RESEARCH PARK. There is appropriated 26 from the general fund of the state to Iowa state university 27 of science and technology for the fiscal year beginning July 28 1, 2012, and ending June 30, 2013, the following amount, or 29 so much thereof as is necessary, to be used for the purposes 30 designated: 31 For the economic development core facility located at the 32 research park: 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,000,000 34 Sec. 12. UNIVERSITY OF IOWA —— STATE HYGIENIC 35 -4- LSB 2538HV (2) 85 tm/jp 4/ 8

H.F. 648 LABORATORY. There is appropriated from the general fund of 1 the state to the state university of Iowa for the fiscal year 2 beginning July 1, 2012, and ending June 30, 2013, the following 3 amount, or so much thereof as is necessary, to be used for the 4 purposes designated: 5 For infrastructure improvements to construct a multipurpose 6 training facility at the state hygienic laboratory at the state 7 university of Iowa: 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000 9 The appropriation in this section is in lieu of the 10 appropriation made for the same purpose in 2013 Iowa Acts, 11 House File 638, if enacted. 12 Sec. 13. DEPARTMENT OF PUBLIC SAFETY. There is appropriated 13 from the general fund of the state to the department of public 14 safety for the fiscal year beginning July 1, 2012, and ending 15 June 30, 2013, the following amount, or so much thereof as is 16 necessary, to be used for the purposes designated: 17 For equipment: 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000 19 Sec. 14. DEPARTMENT OF AGRICULTURE AND LAND 20 STEWARDSHIP. There is appropriated from the general fund of 21 the state to the department of agriculture and land stewardship 22 for the fiscal year beginning July 1, 2012, and ending June 30, 23 2013, the following amount, or so much thereof as is necessary, 24 to be used for the purposes designated: 25 For deposit in the agricultural drainage well water quality 26 assistance fund created in section 460.303 to be used for 27 purposes of supporting the agricultural drainage well water 28 quality assistance program as provided in section 460.304: 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,620,000 30 The appropriation in this section is in lieu of the 31 appropriation made for the same purpose in 2013 Iowa Acts, 32 Senate File 435, if enacted. 33 Sec. 15. DEPARTMENT OF ADMINISTRATIVE SERVICES. There 34 is appropriated from the general fund of the state to the 35 -5- LSB 2538HV (2) 85 tm/jp 5/ 8

H.F. 648 department of administrative services for the fiscal year 1 beginning July 1, 2012, and ending June 30, 2013, the following 2 amount, or so much thereof as is necessary, to be used for the 3 purposes designated: 4 For projects related to major repairs and major maintenance 5 needs including health, life, and fire safety needs and for 6 compliance with the federal Americans with Disabilities Act for 7 state buildings: 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,500,000 9 Sec. 16. NONREVERSION. Unless otherwise provided, 10 notwithstanding section 8.33, moneys appropriated in this 11 division of this Act that remain unencumbered or unobligated at 12 the close of the fiscal year shall not revert but shall remain 13 available for expenditure for the purposes designated until the 14 close of the succeeding fiscal year. 15 Sec. 17. EFFECTIVE UPON ENACTMENT. This division of this 16 Act, being deemed of immediate importance, takes effect upon 17 enactment. 18 EXPLANATION 19 This bill relates to state and local finances by making 20 transfers and appropriations. The bill is organized into 21 divisions. 22 BOND REPAYMENT FUND. The bill creates a state bond repayment 23 fund in new Code section 8.57F. 24 The excess revenues from the ending balance in the general 25 fund of the state from the fiscal year beginning July 1, 2012, 26 that under current law, flow through the cash reserve fund then 27 to the Iowa economic emergency fund in the succeeding fiscal 28 year, are addressed. Once the Iowa economic emergency fund 29 has reached its maximum balance in the fiscal year beginning 30 July 1, 2013, after the designated portion of the excess 31 moneys is transferred to the taxpayers trust fund pursuant 32 to Code section 8.55, subsection 2, paragraph “a”, the next 33 $113,800,000 is transferred to the state bond repayment fund. 34 Any excess remaining after the transfer to the state bond 35 -6- LSB 2538HV (2) 85 tm/jp 6/ 8

H.F. 648 repayment fund is transferred to the taxpayers trust fund. 1 The state bond repayment fund is created to be separate 2 from the general fund of the state and the balance in the fund 3 is not to be considered part of the balance of the general 4 fund of the state. Moneys in the fund shall only be used for 5 the defeasance or redemption of outstanding obligations of 6 state-issued revenue bonds that have debt service paid by a 7 dedicated revenue source. 8 The moneys credited to the fund for the fiscal year beginning 9 July 1, 2013, are appropriated to the treasurer of state to be 10 used to defease or redeem various specified bonds in lieu of 11 the revenue sources otherwise designated by law. 12 Code section 8.58, exempting the balances in existing 13 reserve funds from being considered in the application of any 14 formula, index, or other statutory triggering mechanism which 15 would affect appropriations, payments, or taxation rates, 16 and by an arbitrator or collective bargaining negotiation 17 under Code chapter 20, is amended by adding the new state bond 18 repayment fund created in the bill. 19 The division takes effect upon enactment, applies to 20 transfers made from the Iowa economic emergency fund to the 21 state bond repayment fund instead of the general fund on or 22 after the effective date, and requires the effect of such 23 transfers to be reflected by adjusting the state general fund 24 expenditure limitation calculated for fiscal year 2013-2014 25 accordingly. 26 PUBLIC RETIREMENT SYSTEMS. The bill transfers moneys from 27 the general fund of the state to the judicial retirement fund 28 and to the peace officers’ retirement, accident, and disability 29 system retirement fund for FY 2012-2013. The division takes 30 effect upon enactment. 31 MISCELLANEOUS APPROPRIATIONS. The bill makes various 32 appropriations from the general fund of the state to the 33 university of northern Iowa, Iowa state university of science 34 and technology, the university of Iowa, the department 35 -7- LSB 2538HV (2) 85 tm/jp 7/ 8