Senate File 175 - Introduced
SENATE FILE 175
BY GARRETT
A BILL FOR
1 An Act relating to the use of moneys in the Iowa economic
2 emergency fund, and including effective date provisions.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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1 Section 1. Section 8.55, subsection 2, unnumbered paragraph
2 1, Code 2021, is amended to read as follows:
3 The maximum balance of the fund is the amount equal to two
4 and one-half percent of the adjusted revenue estimate for the
5 fiscal year. If the amount of moneys in the Iowa economic
6 emergency fund is equal to exceeds the maximum balance, moneys
7 in excess of this amount shall be distributed as follows:
8 Sec. 2. Section 8.55, subsection 3, paragraph b, Code 2021,
9 is amended to read as follows:
10 b. Moneys in the fund may be used for cash flow purposes
11 during a fiscal year upon executive order by the governor,
12 provided that any moneys so allocated are returned to the fund
13 by the end of that fiscal year.
14 Sec. 3. Section 8.55, subsection 3, paragraph c, Code 2021,
15 is amended by striking the paragraph and inserting in lieu
16 thereof the following:
17 c. Moneys in the fund may be used to prevent or reduce an
18 overdraft on or deficit in the general fund of the state, upon
19 executive order by the governor, in an amount not to exceed one
20 percent of the adjusted revenue estimate for the fiscal year
21 for which the moneys are spent. Moneys in the fund shall not
22 be used for this purpose until the governor issues an official
23 proclamation and notifies the legislative fiscal committee and
24 the legislative services agency that the balance of the general
25 fund is negative and that an appropriation made pursuant to
26 this paragraph brings the general fund into balance or reduces
27 the deficit in the general fund.
28 Sec. 4. Section 8.55, subsection 3, paragraph e, Code 2021,
29 is amended to read as follows:
30 e. If an appropriation is made moneys are spent pursuant to
31 paragraph “c” for a fiscal year, there is appropriated from the
32 general fund of the state to the Iowa economic emergency fund
33 for the following fiscal year, the amount of the appropriation
34 made spent pursuant to paragraph “c”, that has not already been
35 returned to the Iowa economic emergency fund.
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1 Sec. 5. EFFECTIVE DATE. This Act, being deemed of immediate
2 importance, takes effect upon enactment.
3 EXPLANATION
4 The inclusion of this explanation does not constitute agreement with
5 the explanation’s substance by the members of the general assembly.
6 This bill relates to the use of moneys in the Iowa economic
7 emergency fund.
8 Currently, moneys in the Iowa economic emergency fund may
9 be used for cash flow purposes, provided that any moneys so
10 allocated are returned to the fund by the end of that fiscal
11 year. The bill requires an executive order by the governor in
12 order to use the moneys in the fund for cash flow purposes.
13 Currently, an appropriation from the Iowa economic emergency
14 fund to the general fund is authorized for purposes of reducing
15 or preventing an overdraft on or deficit in the general fund.
16 The amount of the appropriation is the amount used from the
17 Iowa economic emergency fund for cash flow purposes and that
18 was not returned to the fund by the end of the fiscal year,
19 not to exceed 1 percent of the adjusted revenue estimate for
20 the fiscal year for which the appropriation is made. There
21 are two conditions that must be met before the appropriation
22 can be made. First, prior to the appropriation, the balance
23 of the general fund at the end of the fiscal year for which the
24 appropriation is made is negative. Second, the governor issues
25 an official proclamation and notifies the legislative fiscal
26 committee and the legislative services agency that the balance
27 of the general fund is negative and that the appropriation made
28 brings the general fund into balance.
29 The bill provides instead that moneys in the Iowa economic
30 emergency fund may be used to prevent or reduce an overdraft
31 on or deficit in the general fund, upon executive order by the
32 governor, in an amount not to exceed 1 percent of the adjusted
33 revenue estimate for the fiscal year for which the moneys
34 are spent. The bill prohibits moneys in the fund from being
35 used for this purpose until the governor issues an official
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 S.F. 175
1 proclamation and notifies the legislative fiscal committee and
2 the legislative services agency that the balance of the general
3 fund is negative and that an appropriation from the Iowa
4 economic emergency fund brings the general fund into balance or
5 reduces the deficit in the general fund.
6 The bill takes effect upon enactment.
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Statutes affected:
Introduced: 8.55