SF 352 (LSB 1743XS (3) 86)

SENATE FILE 352

BY  ZAUN

A BILL FOR

An Act relating to the taxpayers trust fund by modifying the transfer of moneys from the Iowa economic emergency fund to the taxpayers trust fund and including effective date and retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 8.54, subsection 5, Code 2015, is amended by striking the subsection.
    Sec. 2.  Section 8.55, subsection 2, Code 2015, is amended to read as follows:
   2.  The maximum balance of the fund is the amount equal to two and one-half percent of the adjusted revenue estimate for the fiscal year. 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 2015, 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, moneys Moneys appropriated under in section 8.57 and moneys contained in the cash reserve fund, rebuild Iowa infrastructure fund, environment first fund, Iowa economic emergency fund, taxpayers trust fund, and state bond repayment 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, moneys Moneys appropriated under in section 8.57 and moneys contained in the cash reserve fund, rebuild Iowa infrastructure fund, environment first fund, Iowa economic emergency fund, taxpayers trust fund, and state bond repayment fund shall not be considered by an arbitrator or in negotiations under chapter 20.
    Sec. 4.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 5.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to July 1, 2014, to moneys attributed to fiscal years beginning on or after July 1, 2014.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill relates to the transfer of moneys from the Iowa economic emergency fund to the taxpayers trust fund.
   Under current law in Code section 8.55, when the balance of the Iowa economic emergency fund is equal to the fund’s maximum balance, the excess is first distributed to the taxpayers trust fund up to a formula amount and the remainder is transferred to the general fund of the state. The bill provides that the entire excess is transferred to the taxpayers trust fund and moneys would no longer be transferred to the general fund of the state.
   By operation of law in Code section 8.57E, moneys in the taxpayers trust fund are used each fiscal year to provide an Iowa taxpayers trust fund tax credit in accordance with Code section 422.11E.
   Code section 8.54, relating to the state general fund expenditure limitation, is amended to delete a subsection that provides for readjustment of the expenditure limitation to reflect moneys anticipated to be transferred to the general fund of the state from the Iowa economic emergency fund.
   Code section 8.58, providing an exemption from statutory triggering mechanisms and consideration by an arbitrator or in a collective bargaining negotiation under Code chapter 20 for moneys in various funds, is amended to eliminate a reference to the transfer from the Iowa economic emergency fund to the general fund of the state.
   The bill takes effect upon enactment and applies retroactively to July 1, 2014, to moneys attributed to fiscal years beginning on or after July 1, 2014.