SF 6 (LSB 1110XS (2) 85)

SENATE FILE 6

BY  HOGG

A BILL FOR

An Act increasing the maximum balance authorized for the Iowa economic emergency fund.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 8.54, subsection 5, Code 2013, is amended to read as follows:
   5.  For fiscal years in which it is anticipated that the distribution of moneys from the Iowa economic emergency fund in accordance with section 8.55, subsection 2
 
2A, will result in moneys being transferred to the general fund, the original state general fund expenditure limitation amount provided for in subsection 3 shall be readjusted to include the amount of moneys anticipated to be so transferred.
    Sec. 2.  Section 8.55, subsection 2, Code 2013, is amended to read as follows:
   2.  The maximum balance of the
 
Iowa economic emergency fund is the
 
as follows:
   a.  For the fiscal year beginning July 1, 2013, an amount equal to two and one-half
 
five percent of the adjusted revenue estimate for the fiscal year.
   b.  For the fiscal year beginning July 1, 2014, and succeeding fiscal years, an amount equal to seven and one-half percent of the adjusted revenue estimate for the fiscal year.
   2A.  If the amount of moneys in the Iowa economic emergency fund is equal to the maximum balance, moneys in excess of this amount shall be distributed as follows:
   a.  The first sixty million dollars of the difference between the actual net revenue for the general fund of the state for the fiscal year and the adjusted revenue estimate for the fiscal year shall be transferred to the taxpayers trust fund.
   b.  The remainder of the excess, if any, shall be transferred to the general fund of the state.
    Sec. 3.  Section 8.58, Code 2013, is amended to read as follows:
   8.58  Exemption from automatic application.
   1.  To the extent that moneys appropriated under section 8.57 do not result in moneys being credited to the general fund under section 8.55, subsection 2
 
2A, moneys appropriated under section 8.57 and moneys contained in the cash reserve fund, rebuild Iowa infrastructure fund, environment first fund, Iowa economic emergency fund, and taxpayers trust fund shall not be considered in the application of any formula, index, or other statutory triggering mechanism which would affect appropriations, payments, or taxation rates, contrary provisions of the Code notwithstanding.
   2.  To the extent that moneys appropriated under section 8.57 do not result in moneys being credited to the general fund under section 8.55, subsection 2
 
2A, moneys appropriated under section 8.57 and moneys contained in the cash reserve fund, rebuild Iowa infrastructure fund, environment first fund, Iowa economic emergency fund, and taxpayers trust fund shall not be considered by an arbitrator or in negotiations under chapter 20.
EXPLANATION
   This bill increases the maximum balance of the Iowa economic emergency fund in Code section 8.55 over a two-year period. Under current law, the maximum balance for the fund is 2.5 percent of the adjusted revenue estimate for the fiscal year. For the fiscal year beginning July 1, 2013, the percentage is increased to 5 percent and for succeeding fiscal years the percentage is increased to 7.5 percent.
   The term “adjusted revenue estimate” is defined in Code section 8.54 to mean the appropriate revenue estimate for the general fund of the state for the fiscal year as determined by the revenue estimating conference under Code section 8.22A, subsection 3, by December 15 of the preceding fiscal year or later if there is a reduction in the estimate, as adjusted by subtracting estimated tax refunds payable from that estimated revenue and as determined by the conference, adding any new revenues which may be considered to be eligible for deposit in the general fund of the state.
   Under Code section 8.57, subsections 1, 2, and 3, the surplus existing in the general fund of the state at the conclusion of a fiscal year is appropriated for distribution in the succeeding fiscal year to the cash reserve fund and then the Iowa economic emergency fund.
   References to the subsection providing for transfer of moneys from the Iowa economic emergency fund after the fund has reached its maximum balance are revised to reflect renumbering of the subsection by the bill in Code section 8.54, relating to the state general fund expenditure limitation, and Code section 8.58, exempting moneys appropriated for various reserve funds from application any formula, index, or other statutory triggering mechanism which would affect appropriations, payments, or taxation rates and from consideration by an arbitrator or in negotiations under public employee collective bargaining.