Senate File 175 - Introduced SENATE FILE 175 BY GARRETT A BILL FOR An Act relating to the use of moneys in the Iowa economic 1 emergency fund, and including effective date provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2275XS (1) 89 ns/tm

S.F. 175 Section 1. Section 8.55, subsection 2, unnumbered paragraph 1 1, Code 2021, is amended to read as follows: 2 The maximum balance of the fund is the amount equal to two 3 and one-half percent of the adjusted revenue estimate for the 4 fiscal year. If the amount of moneys in the Iowa economic 5 emergency fund is equal to exceeds the maximum balance, moneys 6 in excess of this amount shall be distributed as follows: 7 Sec. 2. Section 8.55, subsection 3, paragraph b, Code 2021, 8 is amended to read as follows: 9 b. Moneys in the fund may be used for cash flow purposes 10 during a fiscal year upon executive order by the governor, 11 provided that any moneys so allocated are returned to the fund 12 by the end of that fiscal year. 13 Sec. 3. Section 8.55, subsection 3, paragraph c, Code 2021, 14 is amended by striking the paragraph and inserting in lieu 15 thereof the following: 16 c. Moneys in the fund may be used to prevent or reduce an 17 overdraft on or deficit in the general fund of the state, upon 18 executive order by the governor, in an amount not to exceed one 19 percent of the adjusted revenue estimate for the fiscal year 20 for which the moneys are spent. Moneys in the fund shall not 21 be used for this purpose until the governor issues an official 22 proclamation and notifies the legislative fiscal committee and 23 the legislative services agency that the balance of the general 24 fund is negative and that an appropriation made pursuant to 25 this paragraph brings the general fund into balance or reduces 26 the deficit in the general fund. 27 Sec. 4. Section 8.55, subsection 3, paragraph e, Code 2021, 28 is amended to read as follows: 29 e. If an appropriation is made moneys are spent pursuant to 30 paragraph “c” for a fiscal year, there is appropriated from the 31 general fund of the state to the Iowa economic emergency fund 32 for the following fiscal year, the amount of the appropriation 33 made spent pursuant to paragraph “c” , that has not already been 34 returned to the Iowa economic emergency fund . 35 -1- LSB 2275XS (1) 89 ns/tm 1/ 3

S.F. 175 Sec. 5. EFFECTIVE DATE. This Act, being deemed of immediate 1 importance, takes effect upon enactment. 2 EXPLANATION 3 The inclusion of this explanation does not constitute agreement with 4 the explanation’s substance by the members of the general assembly. 5 This bill relates to the use of moneys in the Iowa economic 6 emergency fund. 7 Currently, moneys in the Iowa economic emergency fund may 8 be used for cash flow purposes, provided that any moneys so 9 allocated are returned to the fund by the end of that fiscal 10 year. The bill requires an executive order by the governor in 11 order to use the moneys in the fund for cash flow purposes. 12 Currently, an appropriation from the Iowa economic emergency 13 fund to the general fund is authorized for purposes of reducing 14 or preventing an overdraft on or deficit in the general fund. 15 The amount of the appropriation is the amount used from the 16 Iowa economic emergency fund for cash flow purposes and that 17 was not returned to the fund by the end of the fiscal year, 18 not to exceed 1 percent of the adjusted revenue estimate for 19 the fiscal year for which the appropriation is made. There 20 are two conditions that must be met before the appropriation 21 can be made. First, prior to the appropriation, the balance 22 of the general fund at the end of the fiscal year for which the 23 appropriation is made is negative. Second, the governor issues 24 an official proclamation and notifies the legislative fiscal 25 committee and the legislative services agency that the balance 26 of the general fund is negative and that the appropriation made 27 brings the general fund into balance. 28 The bill provides instead that moneys in the Iowa economic 29 emergency fund may be used to prevent or reduce an overdraft 30 on or deficit in the general fund, upon executive order by the 31 governor, in an amount not to exceed 1 percent of the adjusted 32 revenue estimate for the fiscal year for which the moneys 33 are spent. The bill prohibits moneys in the fund from being 34 used for this purpose until the governor issues an official 35 -2- LSB 2275XS (1) 89 ns/tm 2/ 3

S.F. 175 proclamation and notifies the legislative fiscal committee and 1 the legislative services agency that the balance of the general 2 fund is negative and that an appropriation from the Iowa 3 economic emergency fund brings the general fund into balance or 4 reduces the deficit in the general fund. 5 The bill takes effect upon enactment. 6 -3- LSB 2275XS (1) 89 ns/tm 3/ 3