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

H.F. _____ a. In the fiscal year beginning July 1, 2015, in conjunction 1 with the honey creek premier destination park authority, 2 for redemption of the premier destination park bonds issued 3 pursuant to section 463C.12, thirty-three million seven hundred 4 thousand dollars. 5 b. In the fiscal year beginning July 1, 2015, in conjunction 6 with the Iowa finance authority, defeasance of the prison 7 infrastructure revenue bonds issued pursuant to section 16.177, 8 twenty-six million one hundred thousand dollars. 9 c. In the fiscal year beginning July 1, 2020, redemption 10 of Iowa jobs program bonds issued pursuant to sections 12.87 11 through 12.90, due for redemption during that fiscal year, 12 twenty-nine million five hundred thousand dollars. 13 d. In the fiscal year beginning July 1, 2020, school 14 infrastructure program bonds issued pursuant to sections 12.81 15 through 12.86, due for defeasance during that fiscal year, 16 twenty-four million five hundred thousand dollars. 17 Sec. 3. Section 8.58, Code 2013, is amended to read as 18 follows: 19 8.58 Exemption from automatic application. 20 1. To the extent that moneys appropriated under section 21 8.57 do not result in moneys being credited to the general fund 22 under section 8.55, subsection 2 , moneys appropriated under 23 section 8.57 and moneys contained in the cash reserve fund, 24 rebuild Iowa infrastructure fund, environment first fund, Iowa 25 economic emergency fund, and taxpayers trust fund , and state 26 bond repayment fund shall not be considered in the application 27 of any formula, index, or other statutory triggering mechanism 28 which would affect appropriations, payments, or taxation rates, 29 contrary provisions of the Code notwithstanding. 30 2. To the extent that moneys appropriated under section 31 8.57 do not result in moneys being credited to the general fund 32 under section 8.55, subsection 2 , moneys appropriated under 33 section 8.57 and moneys contained in the cash reserve fund, 34 rebuild Iowa infrastructure fund, environment first fund, Iowa 35 -2- LSB 2538YC (2) 85 jp/tm 2/ 4

H.F. _____ economic emergency fund, and taxpayers trust fund , and state 1 bond repayment fund shall not be considered by an arbitrator or 2 in negotiations under chapter 20 . 3 Sec. 4. EFFECTIVE UPON ENACTMENT —— APPLICABILITY. 4 1. This Act, being deemed of immediate importance, takes 5 effect upon enactment. 6 2. The section of this Act providing for transfer of 7 moneys from the Iowa economic emergency fund to the state bond 8 repayment fund instead of the general fund of the state applies 9 to transfers made from the Iowa economic emergency fund after 10 the effective date of this Act and the state general fund 11 expenditure limitation calculated for the fiscal year beginning 12 July 1, 2013, shall be adjusted accordingly. 13 EXPLANATION 14 This bill creates the state bond repayment fund in new Code 15 section 8.57F. 16 The excess revenues from the ending balance in the general 17 fund of the state from the fiscal year beginning July 1, 2012, 18 that under current law, flow through the cash reserve fund then 19 to the Iowa economic emergency fund in the succeeding fiscal 20 year, are addressed. Once the Iowa economic emergency fund 21 has reached its maximum balance in the fiscal year beginning 22 July 1, 2013, after the designated portion of the excess 23 moneys is transferred to the taxpayers trust fund pursuant 24 to Code section 8.55, subsection 2, paragraph “a”, the next 25 $113,800,000 is transferred to the state bond repayment fund. 26 Any excess remaining after the transfer to the state bond 27 repayment fund is transferred to the taxpayers trust fund. 28 The state bond repayment fund is created to be separate 29 from the general fund of the state and the balance in the fund 30 is not to be considered part of the balance of the general 31 fund of the state. Moneys in the fund shall only be used for 32 the defeasance or redemption of outstanding obligations of 33 state-issued revenue bonds that have a debt service paid by a 34 dedicated revenue source. 35 -3- LSB 2538YC (2) 85 jp/tm 3/ 4

H.F. _____ The moneys credited to the fund for the fiscal year beginning 1 July 1, 2013, are appropriated to the treasurer of state 2 to be used to defease or redeem various specified bonds in 3 later fiscal years in lieu of the revenue sources otherwise 4 designated by law. 5 Code section 8.58, exempting the balances in existing 6 reserve funds from being considered in the application of any 7 formula, index, or other statutory triggering mechanism which 8 would affect appropriations, payments, or taxation rates, 9 and by an arbitrator or collective bargaining negotiation 10 under Code chapter 20, is amended by adding the new state bond 11 repayment fund created in the bill. 12 The bill takes effect upon enactment, applies to transfers 13 made from the Iowa economic emergency fund to the state bond 14 repayment fund instead of the general fund on or after the 15 effective date, and requires the effect of such transfers to 16 be reflected by adjusting the state general fund expenditure 17 limitation calculated for fiscal year 2013-2014 accordingly. 18 -4- LSB 2538YC (2) 85 jp/tm 4/ 4