Senate File 6 - Introduced SENATE FILE 6 BY HOGG A BILL FOR An Act increasing the maximum balance authorized for the Iowa 1 economic emergency fund. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1110XS (2) 85 jp/rj

S.F. 6 Section 1. Section 8.54, subsection 5, Code 2013, is amended 1 to read as follows: 2 5. For fiscal years in which it is anticipated that the 3 distribution of moneys from the Iowa economic emergency fund 4 in accordance with section 8.55, subsection 2 2A , will result 5 in moneys being transferred to the general fund, the original 6 state general fund expenditure limitation amount provided for 7 in subsection 3 shall be readjusted to include the amount of 8 moneys anticipated to be so transferred. 9 Sec. 2. Section 8.55, subsection 2, Code 2013, is amended 10 to read as follows: 11 2. The maximum balance of the Iowa economic emergency fund 12 is the as follows: 13 a. For the fiscal year beginning July 1, 2013, an amount 14 equal to two and one-half five percent of the adjusted revenue 15 estimate for the fiscal year. 16 b. For the fiscal year beginning July 1, 2014, and 17 succeeding fiscal years, an amount equal to seven and one-half 18 percent of the adjusted revenue estimate for the fiscal year. 19 2A. If the amount of moneys in the Iowa economic emergency 20 fund is equal to the maximum balance, moneys in excess of this 21 amount shall be distributed as follows: 22 a. The first sixty million dollars of the difference between 23 the actual net revenue for the general fund of the state for 24 the fiscal year and the adjusted revenue estimate for the 25 fiscal year shall be transferred to the taxpayers trust fund. 26 b. The remainder of the excess, if any, shall be transferred 27 to the general fund of the state. 28 Sec. 3. Section 8.58, Code 2013, is amended to read as 29 follows: 30 8.58 Exemption from automatic application. 31 1. To the extent that moneys appropriated under section 32 8.57 do not result in moneys being credited to the general 33 fund under section 8.55, subsection 2 2A , moneys appropriated 34 under section 8.57 and moneys contained in the cash reserve 35 -1- LSB 1110XS (2) 85 jp/rj 1/ 3

S.F. 6 fund, rebuild Iowa infrastructure fund, environment first 1 fund, Iowa economic emergency fund, and taxpayers trust fund 2 shall not be considered in the application of any formula, 3 index, or other statutory triggering mechanism which would 4 affect appropriations, payments, or taxation rates, contrary 5 provisions of the Code notwithstanding. 6 2. To the extent that moneys appropriated under section 7 8.57 do not result in moneys being credited to the general fund 8 under section 8.55, subsection 2 2A , moneys appropriated under 9 section 8.57 and moneys contained in the cash reserve fund, 10 rebuild Iowa infrastructure fund, environment first fund, Iowa 11 economic emergency fund, and taxpayers trust fund shall not be 12 considered by an arbitrator or in negotiations under chapter 13 20 . 14 EXPLANATION 15 This bill increases the maximum balance of the Iowa economic 16 emergency fund in Code section 8.55 over a two-year period. 17 Under current law, the maximum balance for the fund is 2.5 18 percent of the adjusted revenue estimate for the fiscal year. 19 For the fiscal year beginning July 1, 2013, the percentage is 20 increased to 5 percent and for succeeding fiscal years the 21 percentage is increased to 7.5 percent. 22 The term “adjusted revenue estimate” is defined in Code 23 section 8.54 to mean the appropriate revenue estimate for the 24 general fund of the state for the fiscal year as determined by 25 the revenue estimating conference under Code section 8.22A, 26 subsection 3, by December 15 of the preceding fiscal year or 27 later if there is a reduction in the estimate, as adjusted by 28 subtracting estimated tax refunds payable from that estimated 29 revenue and as determined by the conference, adding any new 30 revenues which may be considered to be eligible for deposit in 31 the general fund of the state. 32 Under Code section 8.57, subsections 1, 2, and 3, the surplus 33 existing in the general fund of the state at the conclusion 34 of a fiscal year is appropriated for distribution in the 35 -2- LSB 1110XS (2) 85 jp/rj 2/ 3

S.F. 6 succeeding fiscal year to the cash reserve fund and then the 1 Iowa economic emergency fund. 2 References to the subsection providing for transfer of 3 moneys from the Iowa economic emergency fund after the fund has 4 reached its maximum balance are revised to reflect renumbering 5 of the subsection by the bill in Code section 8.54, relating 6 to the state general fund expenditure limitation, and Code 7 section 8.58, exempting moneys appropriated for various reserve 8 funds from application any formula, index, or other statutory 9 triggering mechanism which would affect appropriations, 10 payments, or taxation rates and from consideration by an 11 arbitrator or in negotiations under public employee collective 12 bargaining. 13 -3- LSB 1110XS (2) 85 jp/rj 3/ 3