S.F. _____ H.F. _____ Section 1. Section 8.53, Code 2022, is amended to read as 1 follows: 2 8.53 GAAP deficit —— GAAP implementation. 3 For the fiscal year beginning July 1, 1996, and each 4 succeeding fiscal year, the governor shall recommend in the 5 governor’s budget and the general assembly shall provide funds 6 to eliminate the GAAP deficit of the general fund of the state, 7 as reported in the state’s comprehensive annual comprehensive 8 financial report issued during the prior fiscal year, either 9 through the appropriation of specific funds to correct a GAAP 10 adjustment or by setting funds aside in a special account in an 11 amount equal to the GAAP deficit. 12 Sec. 2. Section 8A.111, subsection 5, Code 2022, is amended 13 to read as follows: 14 5. A comprehensive An annual comprehensive financial report 15 as required under section 8A.502, subsection 8 . 16 Sec. 3. Section 8A.502, subsection 8, Code 2022, is amended 17 to read as follows: 18 8. Accounts. To keep the central budget and proprietary 19 control accounts of the general fund of the state and special 20 funds, as defined in section 8.2 , of the state government. 21 Upon elimination of the state deficit under generally accepted 22 accounting principles, including the payment of items budgeted 23 in a subsequent fiscal year which under generally accepted 24 accounting principles should be budgeted in the current fiscal 25 year, the recognition of revenues received and expenditures 26 paid and transfers received and paid within the time period 27 required pursuant to section 8.33 shall be in accordance with 28 generally accepted accounting principles. Budget accounts 29 are those accounts maintained to control the receipt and 30 disposition of all funds, appropriations, and allotments. 31 Proprietary accounts are those accounts relating to assets, 32 liabilities, income, and expense. For each fiscal year, the 33 financial position and results of operations of the state 34 shall be reported in a comprehensive an annual comprehensive 35 -1- LSB 5296XD (3) 89 ec/rn 1/ 3

S.F. _____ H.F. _____ financial report prepared in accordance with generally accepted 1 accounting principles, as established by the governmental 2 accounting standards board. 3 Sec. 4. Section 8A.504, subsection 1, paragraph c, Code 4 2022, is amended to read as follows: 5 c. “Public agency” means a board, commission, department, 6 including the department of administrative services, or other 7 administrative office or unit of the state of Iowa or any 8 other state entity reported in the Iowa comprehensive annual 9 comprehensive financial report, or a political subdivision of 10 the state, or an office or unit of a political subdivision. 11 “Public agency” does include the clerk of the district court 12 as it relates to the collection of a qualifying debt. “Public 13 agency” does not include the general assembly or the governor. 14 Sec. 5. Section 421.17, subsection 27, paragraph a, Code 15 2022, is amended to read as follows: 16 a. To establish, administer, and make available a 17 centralized debt collection capability and procedure for the 18 use by any state agency or local government entity including, 19 but not limited to, the department of revenue, along with other 20 boards, commissions, departments, and any other entity reported 21 in the Iowa comprehensive annual comprehensive financial 22 report, to collect delinquent accounts, charges, fees, loans, 23 taxes, or other indebtedness owed to or being collected by 24 the state. The department’s collection facilities shall 25 only be available for use by other state agencies or local 26 government entities for their discretionary use when resources 27 are available to the director and subject to the director’s 28 determination that use of the procedure is feasible. The 29 director shall prescribe the appropriate form and manner in 30 which this information is to be submitted to the office of the 31 department. The obligations or indebtedness must be delinquent 32 and not subject to litigation, claim, appeal, or review 33 pursuant to the appropriate remedies of each state agency or 34 local government entity. 35 -2- LSB 5296XD (3) 89 ec/rn 2/ 3

S.F. _____ H.F. _____ Sec. 6. Section 423.1, subsection 57, Code 2022, is amended 1 to read as follows: 2 57. “State agency” means an authority, board, commission, 3 department, instrumentality, or other administrative office 4 or unit of this state, or any other state entity reported in 5 the Iowa comprehensive annual comprehensive financial report, 6 including public institutions of higher education. 7 Sec. 7. 2020 Iowa Acts, chapter 1064, section 16, subsection 8 1, paragraph b, is amended to read as follows: 9 b. “Public agency” means a board, commission, department, 10 including the department of revenue, or other administrative 11 office or unit of the state of Iowa or any other state entity 12 reported in the Iowa comprehensive annual comprehensive 13 financial report, or a political subdivision of the state, or 14 an office or unit of a political subdivision. “Public agency” 15 does include the clerk of the district court as it relates to 16 the collection of a qualifying debt. “Public agency” does not 17 include the general assembly or office of the governor. 18 Sec. 8. CONTINGENT EFFECTIVE DATE. The following takes 19 effect on the effective date of the rules adopted by the 20 department of revenue pursuant to chapter 17A implementing 2020 21 Iowa Acts, chapter 1064, other than transitional rules: 22 The section of this Act amending 2020 Iowa Acts, chapter 23 1064. 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanation’s substance by the members of the general assembly. 27 This bill changes references in the Iowa Code to the 28 comprehensive financial report of the state from the 29 comprehensive annual financial report to the annual 30 comprehensive financial report. The provision of the bill 31 amending 2020 Iowa Acts, chapter 1064, takes effect on the 32 effective date of the rules adopted by the department of 33 revenue pursuant to Code chapter 17A implementing 2020 Iowa 34 Acts, chapter 1064, regarding setoff procedures. 35 -3- LSB 5296XD (3) 89 ec/rn 3/ 3