Senate File 18 - Introduced SENATE FILE 18 BY HOGG A BILL FOR An Act authorizing a contingent appropriation from the Iowa 1 economic emergency fund and the cash reserve fund to prevent 2 a deficit in the general fund of the state. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1102XS (2) 85 jp/rj

S.F. 18 Section 1. Section 8.55, subsection 3, paragraph a, Code 1 2013, is amended to read as follows: 2 a. Except as provided in paragraphs “b” , “0c” , “c” , and 3 “d” , the moneys in the Iowa economic emergency fund shall 4 only be used pursuant to an appropriation made by the general 5 assembly. An appropriation shall only be made for the fiscal 6 year in which the appropriation is made. The moneys shall 7 only be appropriated by the general assembly for emergency 8 expenditures. 9 Sec. 2. Section 8.55, subsection 3, Code 2013, is amended by 10 adding the following new paragraph: 11 NEW PARAGRAPH . 0c. There is appropriated from the Iowa 12 economic emergency fund to the general fund of the state an 13 amount sufficient to reduce or prevent an overdraft on or 14 deficit in the general fund of the state for the fiscal year 15 in which the appropriation is made. The appropriation made in 16 this paragraph shall not exceed an amount equal to ten percent 17 of the combined unobligated and unencumbered balances in the 18 Iowa economic emergency fund and the cash reserve fund on the 19 date the appropriation is made or one hundred million dollars, 20 whichever is less, and is contingent upon all of the following 21 having occurred: 22 (1) The governor projects that the appropriation is 23 necessary to preclude implementation of or to reduce the amount 24 of the uniform reductions in appropriations otherwise required 25 pursuant to section 8.31 to prevent an overdraft on or deficit 26 in the general fund of the state. 27 (2) The governor projects that without the appropriation, 28 the balance of the general fund of the state at the close of the 29 fiscal year will be negative. 30 (3) The general assembly is not in regular or extraordinary 31 session. 32 (4) The governor has issued an official proclamation and 33 has notified the co-chairpersons of the fiscal committee of 34 the legislative council and the legislative services agency 35 -1- LSB 1102XS (2) 85 jp/rj 1/ 3

S.F. 18 verifying the contingencies addressed in subparagraphs (1) 1 through (3) and outlining the reasons why the appropriation 2 authorized in this paragraph “0c” is necessary to reduce or 3 prevent an overdraft on or deficit in the general fund of the 4 state. The appropriation amount shall be identified in the 5 proclamation. The effective date of the appropriation is the 6 date the proclamation is published in the Iowa administrative 7 bulletin. 8 If the balance in the Iowa economic emergency fund is 9 insufficient to fund the entire amount of the appropriation 10 made pursuant to this paragraph “0c” , there is transferred from 11 the cash reserve fund to the Iowa economic emergency fund the 12 amount of the insufficiency. 13 EXPLANATION 14 This bill authorizes a contingent appropriation from the 15 Iowa economic emergency fund and the cash reserve fund to 16 prevent a deficit in the general fund of the state. 17 The bill amends the Iowa economic emergency fund 18 provisions in Code section 8.55 to authorize a new contingent 19 appropriation of up to 10 percent of the available combined 20 balances of the Iowa economic emergency fund and the cash 21 reserve fund or $100 million, whichever is less, to the general 22 fund of the state. An existing contingent appropriation for a 23 similar purpose in Code section 8.55, subsection 3, paragraph 24 “c”, may only be made at the close of the fiscal year. The new 25 appropriation is contingent upon the following: the governor 26 projecting that the appropriation is necessary to preclude 27 the governor from ordering an across-the-board appropriation 28 reduction in accordance with Code section 8.31, the governor 29 projecting that without the appropriation the balance of the 30 general fund will be negative at the close of the fiscal 31 year, the general assembly is not in regular or extraordinary 32 session, and the governor verifies these contingencies in 33 an official proclamation which states the reasons why the 34 appropriation is necessary to prevent an overdraft on or 35 -2- LSB 1102XS (2) 85 jp/rj 2/ 3

S.F. 18 deficit in the general fund of the state. 1 The proclamation is required to identify the amount of 2 the appropriation and the appropriation takes effect on the 3 date the proclamation is published in the Iowa administrative 4 bulletin. 5 If the balance in the Iowa economic emergency fund is 6 insufficient to fund the entire amount of the contingent 7 appropriation, the bill provides for a transfer from the cash 8 reserve fund to the Iowa economic emergency fund in the amount 9 of the insufficiency. 10 -3- LSB 1102XS (2) 85 jp/rj 3/ 3