Senate File 584 - Introduced SENATE FILE 584 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO SF 175) 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 2275SV (2) 89 ns/tm

S.F. 584 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, 6 moneys in excess of this amount the maximum balance shall be 7 distributed as follows: 8 Sec. 2. Section 8.55, subsection 3, paragraph c, Code 2021, 9 is amended by striking the paragraph and inserting in lieu 10 thereof the following: 11 c. Moneys in the fund may be used to prevent or reduce an 12 overdraft on or deficit in the general fund of the state, upon 13 executive order by the governor, in an amount not to exceed one 14 percent of the adjusted revenue estimate for the fiscal year 15 for which the moneys are spent. Moneys in the fund shall not be 16 used for this purpose until the governor issues an executive 17 order and notifies the legislative fiscal committee and the 18 legislative services agency that the balance of the general 19 fund is or will be negative and that an appropriation made 20 pursuant to this paragraph brings or will bring the general 21 fund into balance or reduces or will reduce the deficit in the 22 general fund. 23 Sec. 3. Section 8.55, subsection 3, paragraph e, Code 2021, 24 is amended to read as follows: 25 e. If an appropriation is made moneys are spent pursuant to 26 paragraph “c” for a fiscal year, there is appropriated from the 27 general fund of the state to the Iowa economic emergency fund 28 for the following fiscal year, the amount of the appropriation 29 made spent pursuant to paragraph “c” , that has not already been 30 returned to the Iowa economic emergency fund . 31 Sec. 4. EFFECTIVE DATE. This Act, being deemed of immediate 32 importance, takes effect upon enactment. 33 EXPLANATION 34 The inclusion of this explanation does not constitute agreement with 35 -1- LSB 2275SV (2) 89 ns/tm 1/ 2

S.F. 584 the explanation’s substance by the members of the general assembly. 1 This bill relates to the use of moneys in the Iowa economic 2 emergency fund. 3 Currently, an appropriation from the Iowa economic emergency 4 fund to the general fund is authorized for purposes of reducing 5 or preventing an overdraft on or deficit in the general fund. 6 The amount of the appropriation is the amount used from the 7 Iowa economic emergency fund for cash flow purposes and that 8 was not returned to the fund by the end of the fiscal year, 9 not to exceed 1 percent of the adjusted revenue estimate for 10 the fiscal year for which the appropriation is made. There 11 are two conditions that must be met before the appropriation 12 can be made. First, prior to the appropriation, the balance 13 of the general fund at the end of the fiscal year for which the 14 appropriation is made is negative. Second, the governor issues 15 an official proclamation and notifies the legislative fiscal 16 committee and the legislative services agency that the balance 17 of the general fund is negative and that the appropriation made 18 brings the general fund into balance. 19 The bill provides instead that moneys in the Iowa economic 20 emergency fund may be used to prevent or reduce an overdraft 21 on or deficit in the general fund, upon executive order by the 22 governor, in an amount not to exceed 1 percent of the adjusted 23 revenue estimate for the fiscal year for which the moneys 24 are spent. The bill prohibits moneys in the fund from being 25 used for this purpose until the governor issues an executive 26 order and notifies the legislative fiscal committee and the 27 legislative services agency that the balance of the general 28 fund is or will be negative and that an appropriation from the 29 Iowa economic emergency fund brings or will bring the general 30 fund into balance or reduces or will reduce the deficit in the 31 general fund. 32 The bill takes effect upon enactment. 33 -2- LSB 2275SV (2) 89 ns/tm 2/ 2