House
Joint
Resolution
2
-
Introduced
HOUSE
JOINT
RESOLUTION
2
BY
PAULSEN
,
SODERBERG
,
UPMEYER
,
HAGENOW
,
VANDER
LINDEN
,
WINDSCHITL
,
PETTENGILL
,
ALONS
,
SALMON
,
FISHER
,
BACON
,
HESS
,
KAUFMANN
,
J.
SMITH
,
DRAKE
,
BYRNES
,
BRANDENBURG
,
R.
TAYLOR
,
RAYHONS
,
L.
MILLER
,
BALTIMORE
,
SCHULTZ
,
COSTELLO
,
ROGERS
,
GRASSLEY
,
GASSMAN
,
WORTHAN
,
DEYOE
,
HEARTSILL
,
JORGENSEN
,
BAUDLER
,
LANDON
,
KOESTER
,
WATTS
,
HIGHFILL
,
COWNIE
,
KLEIN
,
MAXWELL
,
HUSEMAN
,
HANUSA
,
HEIN
,
SHEETS
,
STANERSON
,
MOORE
,
DOLECHECK
,
FORRISTALL
,
GARRETT
,
LOFGREN
,
S.
OLSON
,
FRY
,
SHAW
,
and
HEATON
HOUSE
JOINT
RESOLUTION
A
Joint
Resolution
proposing
amendments
to
the
Constitution
of
1
the
State
of
Iowa
relating
to
state
budgeting
by
creating
a
2
state
general
fund
expenditure
limitation,
providing
for
a
3
taxpayers
trust
fund,
requiring
authorization
for
certain
4
bonds,
and
restricting
certain
state
revenue
changes.
5
BE
IT
RESOLVED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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Section
1.
The
following
amendment
to
the
Constitution
of
1
the
State
of
Iowa
is
proposed:
2
The
Constitution
of
the
State
of
Iowa
is
amended
by
adding
3
the
following
new
section
to
new
Article
XIII:
4
ARTICLE
XIII.
5
EXPENDITURE
LIMITATION.
6
General
fund
expenditure
limitation.
SECTION
1.
7
1.
For
the
purposes
of
this
section:
8
a.
“Adjusted
revenue
estimate”
means
the
most
recent
revenue
9
estimate
determined
before
January
1,
or
a
later
and
lesser
10
revenue
estimate
determined
before
adjournment
of
the
regular
11
session
of
the
general
assembly,
for
the
general
fund
for
the
12
following
fiscal
year
as
determined
by
a
revenue
estimating
13
conference
which
shall
be
established
by
the
general
assembly
14
by
law,
adjusted
by
subtracting
estimated
refunds
payable
from
15
that
estimated
revenue.
However,
if
the
general
assembly
holds
16
an
extraordinary
session
prior
to
the
commencement
of
the
17
fiscal
year
to
which
the
revenue
estimate
applies
and
before
18
or
during
the
extraordinary
session
the
revenue
estimating
19
conference
determines
a
lesser
revenue
estimate,
the
lesser
20
estimate
shall
be
used
for
the
adjusted
revenue
estimate.
21
b.
“General
fund”
means
the
principal
operating
fund
of
the
22
state
which
shall
be
established
by
the
general
assembly
by
23
law.
24
c.
“New
revenue”
means
moneys
which
are
received
by
the
25
general
fund
due
to
increased
tax
rates
or
fees
or
newly
26
created
taxes
or
fees
over
and
above
those
moneys
which
are
27
received
due
to
state
taxes
or
fees
which
are
in
effect
as
28
of
January
1
following
the
most
recent
meeting
of
the
state
29
revenue
estimating
conference.
“New
revenue”
also
includes
30
moneys
received
by
the
general
fund
due
to
new
transfers
over
31
and
above
those
moneys
received
by
the
general
fund
due
to
32
transfers
which
are
in
effect
as
of
January
1
following
the
33
most
recent
meeting
of
the
state
revenue
estimating
conference.
34
Except
for
transfers
provided
for
by
law,
the
state
revenue
35
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estimating
conference
shall
determine
whether
transfers
to
the
1
general
fund
are
to
be
considered
as
new
revenue
in
determining
2
the
state
general
fund
expenditure
limitation.
3
d.
“Surplus”
means
the
cumulative
excess
of
revenue
and
4
other
financing
sources
over
expenditures
and
other
financing
5
uses
for
the
general
fund
at
the
end
of
a
fiscal
year.
6
2.
A
state
general
fund
expenditure
limitation
is
created
7
and
calculated
in
subsection
3,
for
each
fiscal
year
beginning
8
on
or
after
July
1
following
the
effective
date
of
this
9
section.
10
3.
Except
as
otherwise
provided
in
this
section,
the
state
11
general
fund
expenditure
limitation
for
a
fiscal
year
shall
be
12
ninety-nine
percent
of
the
adjusted
revenue
estimate.
13
4.
The
state
general
fund
expenditure
limitation
shall
be
14
used
by
the
governor
in
the
preparation
and
approval
of
the
15
budget
and
by
the
general
assembly
in
the
budget
process.
16
5.
If
a
new
revenue
source
is
proposed,
the
budget
revenue
17
projection
used
for
that
new
revenue
source
for
the
period
18
beginning
on
the
effective
date
of
the
new
revenue
source
and
19
ending
in
the
fiscal
year
in
which
the
source
is
included
in
20
the
adjusted
revenue
estimate
shall
be
ninety-five
percent
21
of
the
amount
remaining
after
subtracting
estimated
refunds
22
payable
from
the
projected
revenue
from
that
source.
If
a
new
23
revenue
source
is
established
and
implemented,
the
original
24
state
general
fund
expenditure
limitation
amount
provided
for
25
in
subsection
3
shall
be
readjusted
to
include
ninety-five
26
percent
of
the
estimated
revenue
from
that
source.
27
6.
a.
If
there
is
a
surplus
existing
at
the
end
of
a
fiscal
28
year
which
exceeds
ten
percent
of
the
adjusted
revenue
estimate
29
of
that
fiscal
year
and
the
actual
net
revenue
for
the
general
30
fund
exceeds
the
adjusted
revenue
estimate
for
that
fiscal
31
year,
the
surplus
shall
be
transferred
to
a
taxpayers
trust
32
fund.
Except
for
temporary
cash
flow
purposes,
moneys
in
the
33
taxpayers
trust
fund
shall
only
be
used
in
accordance
with
34
appropriations
or
transfers
made
by
the
general
assembly
for
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purposes
of
providing
tax
relief.
1
b.
Any
surplus
equal
to
ten
percent
or
less
of
the
adjusted
2
revenue
estimate
of
the
following
fiscal
year
may
be
included
3
in
the
adjusted
revenue
estimate
for
the
following
fiscal
year
4
if
approved
in
a
bill
receiving
the
affirmative
votes
of
at
5
least
three-fifths
of
the
members
elected
to
each
house
of
the
6
general
assembly.
7
7.
If
a
bill
or
joint
resolution
provides
for
a
new
8
enactment
of
revenue
or
appropriations
bonding
authority,
or
9
an
expansion
of
existing
revenue
or
appropriations
bonding
10
authority,
which
bonds
are
funded
in
whole
or
in
part
from
11
revenue
from
the
general
fund
or
from
another
portion
of
the
12
state
treasury,
the
bill
or
joint
resolution
shall
not
become
13
law
unless
approved
by
the
affirmative
votes
of
at
least
14
two-thirds
of
the
members
elected
to
each
house
of
the
general
15
assembly.
In
addition,
the
state
general
fund
expenditure
16
limitation
for
the
initial
or
subsequent
fiscal
year
to
17
which
the
bill
or
joint
resolution
applies
shall
include
any
18
appropriations
of
such
revenue
for
the
fiscal
year.
19
8.
The
scope
of
the
state
general
fund
expenditure
20
limitation
under
subsection
3
shall
not
include
federal
funds,
21
donations,
constitutionally
dedicated
moneys,
and
moneys
22
expended
from
a
state
retirement
system.
23
9.
The
governor
shall
submit
and
the
general
assembly
shall
24
pass
a
budget
which
does
not
exceed
the
state
general
fund
25
expenditure
limitation.
The
governor
shall
not
approve
or
26
disapprove
appropriation
bills
or
items
of
appropriation
bills
27
passed
by
the
general
assembly
in
a
manner
that
would
cause
28
the
final
budget
approved
by
the
governor
to
exceed
the
state
29
general
fund
expenditure
limitation.
30
10.
The
governor
shall
not
submit
and
the
general
assembly
31
shall
not
pass
a
budget
which
in
order
to
balance
assumes
32
reversion
of
any
part
of
the
total
of
the
appropriations
33
included
in
the
budget.
34
11.
The
state
shall
use
consistent
standards,
in
accordance
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H.J.R.
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with
generally
accepted
accounting
principles,
for
all
state
1
budgeting
and
accounting
purposes.
2
12.
The
general
assembly
shall
enact
laws
to
implement
this
3
section.
4
Sec.
2.
The
following
amendment
to
the
Constitution
of
the
5
State
of
Iowa
is
proposed:
6
The
Constitution
of
the
State
of
Iowa
is
amended
by
adding
7
the
following
new
sections
to
new
Article
XIII:
8
ARTICLE
XIII.
9
THREE-FIFTHS
MAJORITY
FOR
TAX
LAW
CHANGES.
10
Three-fifths
majority
to
increase
taxes.
SECTION
1.
A
11
bill
containing
provisions
enacting,
amending,
or
repealing
12
the
state
income
tax
or
enacting,
amending,
or
repealing
the
13
state
sales
and
use
taxes,
in
which
the
aggregate
fiscal
14
impact
of
those
provisions
relating
to
those
taxes
results
15
in
a
net
increase
in
state
tax
revenue,
as
determined
by
the
16
general
assembly,
shall
require
the
affirmative
votes
of
at
17
least
three-fifths
of
the
members
elected
to
each
house
of
the
18
general
assembly
for
passage.
This
section
does
not
apply
to
19
income
tax
or
sales
and
use
taxes
imposed
at
the
option
of
a
20
local
government.
21
Three-fifths
majority
to
enact
new
state
tax.
SEC.
2.
A
bill
22
that
establishes
a
new
state
tax
to
be
imposed
by
the
state
23
shall
require
the
affirmative
votes
of
at
least
three-fifths
24
of
the
members
elected
to
each
house
of
the
general
assembly
25
for
passage.
26
Enforcement
of
three-fifths
majority
requirement.
SEC.
3.
A
27
lawsuit
challenging
the
proper
enactment
of
a
bill
pursuant
to
28
section
1
or
2
shall
be
filed
no
later
than
one
year
following
29
the
enactment.
Failure
to
file
such
a
lawsuit
within
the
30
one-year
time
limit
shall
negate
the
three-fifths
majority
31
requirement
as
it
applies
to
the
bill.
32
Each
bill
to
which
section
1
or
2
applies
shall
include
a
33
separate
provision
describing
the
requirements
for
enactment
34
prescribed
by
section
1
or
2.
35
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Implementation.
SEC.
4.
The
general
assembly
shall
enact
1
laws
to
implement
sections
1
through
3.
2
Sec.
3.
The
foregoing
proposed
amendments
to
the
3
Constitution
of
the
State
of
Iowa
are
referred
to
the
general
4
assembly
to
be
chosen
at
the
next
general
election
for
members
5
of
the
general
assembly,
and
the
Secretary
of
State
is
directed
6
to
cause
them
to
be
published
for
three
consecutive
months
7
previous
to
the
date
of
that
election
as
provided
by
law.
8
EXPLANATION
9
This
resolution
proposes
two
amendments
within
a
new
Article
10
XIII
to
the
Constitution
of
the
State
of
Iowa
which
relate
to
11
state
budgets
and
state
revenue.
12
The
first
amendment
creates
a
state
general
fund
expenditure
13
limitation.
The
amount
of
the
limitation
is
99
percent
of
the
14
adjusted
revenue
estimate.
The
amendment
defines
adjusted
15
revenue
estimate
and
requires
that
that
estimate
be
determined
16
by
a
revenue
estimating
conference
which
is
to
be
created
by
17
the
general
assembly
by
law.
The
amendment
requires
that
the
18
expenditure
limitation
be
used
by
the
governor
in
preparation
19
of
the
governor’s
budget
and
by
the
general
assembly
in
the
20
budget
process.
The
governor
is
prohibited
from
approving
or
21
disapproving
of
appropriations
in
a
manner
that
would
cause
the
22
final
budget
approved
by
the
governor
to
exceed
the
expenditure
23
limitation.
24
The
first
amendment
also
provides
that
if
a
new
revenue
25
source
is
established
and
implemented,
95
percent
of
the
26
estimate
of
that
new
revenue
shall
be
included
in
the
27
expenditure
limitation.
28
The
first
amendment
provides
that
if
there
is
a
surplus
29
existing
at
the
end
of
a
fiscal
year
which
exceeds
10
percent
30
of
the
adjusted
revenue
for
the
fiscal
year
and
the
actual
net
31
revenue
for
the
general
fund
for
the
fiscal
year
exceeds
the
32
adjusted
revenue
estimate
for
the
fiscal
year,
the
surplus
is
33
required
to
be
transferred
to
a
taxpayers
trust
fund.
Any
34
surplus
which
is
equal
to
10
percent
or
less
of
the
amount
of
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the
adjusted
revenue
estimate
of
the
following
fiscal
year
may
1
be
included
in
the
following
year’s
adjusted
revenue
estimate
2
if
inclusion
is
approved
in
a
bill
by
at
least
three-fifths
of
3
the
members
elected
to
each
house
of
the
general
assembly.
4
The
first
amendment
requires
that
enactment
of
a
bill
or
5
joint
resolution
providing
for
new
or
expanded
authority
to
6
issue
revenue
or
appropriations
bonds
funded
in
whole
or
in
7
part
from
revenue
from
the
general
fund
or
from
another
portion
8
of
the
state
treasury
requires
a
vote
of
at
least
two-thirds
of
9
the
members
elected
to
each
house
of
the
general
assembly.
In
10
addition,
the
appropriations
of
such
revenue
are
required
to
11
be
included
in
the
state
general
fund
expenditure
limitation
12
for
each
applicable
fiscal
year.
13
The
first
amendment
also
requires
the
state
to
use
generally
14
accepted
accounting
principles
for
state
budgeting
and
15
accounting
purposes.
The
amendment
provides
that
the
general
16
assembly
shall
enact
laws
to
implement
the
amendment.
17
The
second
amendment
contained
in
the
resolution
requires
18
a
three-fifths
majority
vote
of
the
members
elected
to
each
19
house
of
the
general
assembly
for
certain
tax
law
changes.
20
The
amendment
provides
that
any
bill
that
enacts,
amends,
21
or
repeals
the
state
income
tax
or
the
state
sales
and
use
22
tax,
and
which
causes,
in
the
aggregate,
an
increase
in
state
23
tax
revenues,
as
determined
by
the
general
assembly,
must
be
24
adopted
by
at
least
three-fifths
of
the
members
elected
to
each
25
house
of
the
general
assembly.
The
amendment
also
requires
26
a
three-fifths
majority
vote
of
the
members
elected
to
each
27
house
of
the
general
assembly
in
order
to
enact
a
new
state
tax
28
to
be
imposed
by
the
state.
A
lawsuit
challenging
enactment
29
of
a
bill
subject
to
either
three-fifths
majority
passage
30
requirement
must
be
filed
no
later
than
one
year
from
the
date
31
of
enactment
of
the
bill.
Finally,
the
amendment
provides
32
that
the
general
assembly
shall
enact
laws
to
implement
the
33
amendment.
34
The
resolution,
if
adopted,
will
be
referred
to
the
next
35
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general
assembly.
If
the
next
general
assembly
adopts
this
1
resolution,
the
amendments
will
be
submitted
to
the
voters
for
2
their
decision
on
ratification.
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(4)
85
jp/sc
7/
7