S.F. 2388 Section 1. NEW SECTION . 2.12C Continuing appropriations. 1 1. Annual budget not passed by general assembly. 2 a. This section applies to any fiscal year for which the 3 general assembly has not passed and presented to the governor, 4 on or before July 1 of the fiscal year, any bills appropriating 5 moneys for the fiscal year. 6 b. If, on or after July 1 of the fiscal year, the general 7 assembly passes and presents to the governor one or more bills 8 appropriating moneys for the fiscal year, this section shall 9 cease to apply for purposes of that fiscal year. 10 c. For purposes of this subsection, “bill appropriating 11 moneys for the fiscal year” does not include any of the 12 following: 13 (1) A bill enacting an appropriation for the fiscal year in 14 this Code. 15 (2) A bill enacting an appropriation for the fiscal year if 16 the bill was passed and presented to the governor prior to July 17 1 of the immediately preceding fiscal year. 18 2. Prior fiscal year appropriations determined. 19 a. For all line item appropriations, standing limited 20 appropriations, and standing unlimited appropriations otherwise 21 limited by law, including appropriations from federal and 22 nonstate funds, the department of management, in consultation 23 with the legislative services agency, shall determine the 24 amount of such line item appropriations, standing limited 25 appropriations, and standing unlimited appropriations otherwise 26 limited by law, including appropriations from federal and 27 nonstate funds, made for the immediately preceding fiscal year 28 by taking into consideration all of the following: 29 (1) All Acts appropriating moneys for that immediately 30 preceding fiscal year. 31 (2) All interdepartmental and intradepartmental transfers 32 made pursuant to section 8.39 and other provisions of law for 33 that immediately preceding fiscal year. 34 (3) Other relevant provisions of law. 35 -1- LSB 6915SV (2) 91 ns/jh 1/ 5

S.F. 2388 b. The department of management, in consultation with the 1 legislative services agency, shall also identify the entities 2 to which such appropriations were made, or the entities’ 3 successors. 4 3. Continuing appropriation. There is appropriated from the 5 appropriate state fund or account to the entities identified 6 pursuant to subsection 2, for the fiscal year to which this 7 section applies, amounts, or so much thereof as is necessary, 8 equal to the amounts of all line item appropriations, standing 9 limited appropriations, and standing unlimited appropriations 10 otherwise limited by law, including federal and nonstate funds, 11 made for the immediately preceding fiscal year, as determined 12 pursuant to subsection 2. 13 4. Duplicative standing appropriations supplanted. The 14 amounts appropriated under subsection 3 shall supplant any 15 duplicative standing appropriation for the fiscal year to which 16 this section applies. 17 5. Miscellaneous provisions applicable. Powers, duties, 18 limitations, or requirements, including reporting requirements, 19 set forth for appropriations applicable to the immediately 20 preceding fiscal year are applicable for the fiscal year to 21 which this section applies, and any specified date contained 22 therein shall apply one year later than specified. 23 6. Allocation amounts. For any line item appropriation, 24 standing limited appropriation, or standing unlimited 25 appropriation otherwise limited by law identified pursuant to 26 subsection 2, which is subject to an allocation amount for the 27 immediately preceding fiscal year, the amount appropriated 28 under subsection 3 based on the appropriation shall be subject 29 to the same allocation amount for the fiscal year to which this 30 section applies. 31 7. Nonreversion. For any line item appropriation, standing 32 limited appropriation, or standing unlimited appropriation 33 otherwise limited by law identified pursuant to subsection 2 34 that is subject to a specified nonreversion provision, whether 35 -2- LSB 6915SV (2) 91 ns/jh 2/ 5

S.F. 2388 for a limited or unlimited period, the amount appropriated 1 under subsection 3 based on the appropriation shall be subject 2 to the same specified nonreversion provision, and in the case 3 of a specified nonreversion provision for a limited period, 4 the period shall be considered to be one fiscal year longer 5 than specified for the appropriation identified pursuant to 6 subsection 2. 7 8. Full-time equivalent positions. The amounts appropriated 8 under subsection 3 to an entity identified pursuant to 9 subsection 2 may be used by the entity for a number of 10 full-time equivalent positions for the fiscal year to which 11 this section applies, equal to the number of full-time 12 equivalent positions authorized for the entity for the 13 immediately preceding fiscal year. 14 9. Exclusions. This section does not apply to 15 appropriations identified under subsection 2 that the 16 department of management, in consultation with the legislative 17 services agency, determines to be one-time appropriations. 18 For purposes of this subsection, “one-time appropriation” 19 may include but is not limited to an appropriation from the 20 rebuild Iowa infrastructure fund created in section 8.57 or the 21 technology reinvestment fund created in section 8.57C, or a 22 similar appropriation for an infrastructure project, technology 23 project, or temporary project or program for which a subsequent 24 fiscal year appropriation is not appropriate. 25 10. Adjustment for expenditure limitation. If appropriations 26 made from the general fund of the state pursuant to subsection 27 3 would not comply with the general fund expenditure 28 limitation under section 8.54, the department of management, 29 in consultation with the legislative services agency, shall 30 reduce appropriations made from the general fund of the 31 state pursuant to subsection 3, each by the same percentage, 32 such that appropriations made from the general fund of the 33 state pursuant to subsection 3 comply with the general fund 34 expenditure limitation under section 8.54. 35 -3- LSB 6915SV (2) 91 ns/jh 3/ 5

S.F. 2388 EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 This bill establishes continuing appropriations in fiscal 4 years for which the general assembly does not pass an annual 5 budget. The bill applies to fiscal years for which the general 6 assembly has not passed and presented to the governor, on or 7 before July 1 of the fiscal year, any bills appropriating 8 moneys for the fiscal year, with certain exclusions. The bill 9 ceases to apply for a fiscal year if, on or after July 1 of the 10 fiscal year, the general assembly passes and presents to the 11 governor one or more bills appropriating moneys for the fiscal 12 year. 13 For fiscal years to which the bill applies, the bill requires 14 the department of management (DOM), in consultation with the 15 legislative services agency (LSA), to identify the amounts of 16 all line item appropriations, standing limited appropriations, 17 and standing unlimited appropriations otherwise limited by law 18 for the immediately preceding fiscal year, and the entities to 19 which those appropriations were made. The bill appropriates 20 those amounts to those entities for the fiscal year to which 21 the bill applies. 22 The bill supplants duplicative standing appropriations, 23 meaning the amounts for line item appropriations, standing 24 limited appropriations, and standing unlimited appropriations 25 otherwise limited by law identified for the immediately 26 preceding fiscal year apply in lieu of amounts estimated for 27 associated standing appropriations for the fiscal year to which 28 the bill applies. 29 The bill applies powers, duties, limitations, requirements, 30 allocations, nonreversions, and full-time equivalent position 31 authorizations associated with such appropriations from the 32 immediately preceding fiscal year for the fiscal year to which 33 the bill applies. 34 The bill excludes one-time appropriations from the 35 -4- LSB 6915SV (2) 91 ns/jh 4/ 5

S.F. 2388 immediately preceding fiscal year, as determined by DOM in 1 consultation with LSA. One-time appropriations may include 2 but are not limited to appropriations for an infrastructure 3 project, technology project, or temporary project or program 4 for which a subsequent fiscal year appropriation is not 5 appropriate. 6 The bill does not reapply uncodified transfers from the 7 immediately preceding fiscal year. Codified transfers are not 8 affected by the bill and would operate in accordance with the 9 Code during the fiscal year to which the bill applies. 10 The bill authorizes DOM, in consultation with LSA, to reduce 11 all appropriations from the general fund of the state under the 12 bill for a fiscal year by the same percentage if necessary to 13 comply with state general fund expenditure limitation. 14 The general assembly passed similar provisions in June 2020 15 applicable only to FY 2020-2021. 16 -5- LSB 6915SV (2) 91 ns/jh 5/ 5