Senate File 209 - Enrolled




                                        Senate File 209

                             AN ACT
 RELATING TO PUBLIC FUNDING AND REGULATORY MATTERS BY
    MAKING APPROPRIATIONS, PROVIDING FOR CERTAIN ADDITIONAL
    DEPRECIATION ALLOWANCES, INCREASING THE STATE EARNED INCOME
    TAX CREDIT, AND INCLUDING EFFECTIVE DATE AND RETROACTIVE
    APPLICABILITY PROVISIONS.

 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
                           DIVISION I
                2011 BONUS DEPRECIATION COUPLING
    Section 1.  Section 422.7, subsection 39A, unnumbered
 paragraph 1, as enacted by 2011 Iowa Acts, Senate File 512,
 section 18, is amended to read as follows:
    The additional first=year depreciation allowance authorized
 in section 168(k) of the Internal Revenue Code, as enacted
 by Pub. L. No. 110=185, section 103, Pub. L. No. 111=5,
 section 1201, Pub. L. No. 111=240, section 2022, and Pub. L.
 No. 111=312, section 401, does not apply in computing net
 income for state tax purposes for tax years beginning before
 January 1, 2011. If the taxpayer has taken the additional
 first=year depreciation allowance for purposes of computing
 federal adjusted gross income, then the taxpayer shall make the
 following adjustments to federal adjusted gross income when
 computing net income for state tax purposes:
    Sec. 2.  Section 422.7, subsection 39B, unnumbered paragraph
 1, as enacted by 2011 Iowa Acts, Senate File 512, section 18,
 is amended to read as follows:
    The additional first=year depreciation allowance authorized
 in section 168(n) of the Internal Revenue Code, as enacted by
 Pub. L. No. 110=343, section 710, does not apply in computing
 net income for state tax purposes for tax years beginning
 before January 1, 2011. If the taxpayer has taken the
 additional first=year depreciation allowance for purposes of
 computing federal adjusted gross income, then the taxpayer
 shall make the following adjustments to federal adjusted gross
 income when computing net income for state tax purposes:
    Sec. 3.  Section 422.35, subsection 19A, unnumbered
 paragraph 1, as enacted by 2011 Iowa Acts, Senate File 512,
 section 21, is amended to read as follows:
    The additional first=year depreciation allowance authorized
 in section 168(k) of the Internal Revenue Code, as enacted by
 Pub. L. No. 110=185, section 103, Pub. L. No. 111=5, section
 1201, Pub. L. No. 111=240, section 2022, and Pub. L. No.
 111=312, section 401, does not apply in computing net income
 for state tax purposes for tax years beginning before January
 1, 2011. If the taxpayer has taken the additional first=year
 depreciation allowance for purposes of computing federal
 taxable income, then the taxpayer shall make the following
 adjustments to federal taxable income when computing net income
 for state tax purposes:
    Sec. 4.  Section 422.35, subsection 19B, unnumbered
 paragraph 1, as enacted by 2011 Iowa Acts, Senate File 512,
 section 21, is amended to read as follows:
    The additional first=year depreciation allowance authorized
 in section 168(n) of the Internal Revenue Code, as enacted
 by Pub. L. No. 110=343, section 710, does not apply in
 computing net income for state tax purposes for tax years
 beginning before January 1, 2011. If the taxpayer has taken
 the additional first=year depreciation allowance for purposes
 of computing federal taxable income, then the taxpayer shall
 make the following adjustments to federal taxable income when
 computing net income for state tax purposes:
    Sec. 5.  EFFECTIVE UPON ENACTMENT.  This division of this
 Act, being deemed of immediate importance, takes effect upon
 enactment.
    Sec. 6.  RETROACTIVE APPLICABILITY.  The following provision
 or provisions of this division of this Act apply retroactively
 to January 1, 2008, for tax years ending on or after that date:
    1.  The sections of this Act amending section 422.7,
 subsections 39A and 39B, as enacted by 2011 Iowa Acts, Senate
 File 512, section 18.
    2.  The sections of this Act amending section 422.35,
 subsections 19A and 19B, as enacted by 2011 Iowa Acts, Senate
 File 512, section 21.
                           DIVISION II
                    EARNED INCOME TAX CREDIT
    Sec. 7.  Section 422.12B, subsection 1, Code 2011, is amended
 to read as follows:
    1.  The taxes imposed under this division less the credits
 allowed under section 422.12 shall be reduced by an earned
 income credit equal to seven ten percent of the federal earned
 income credit provided in section 32 of the Internal Revenue
 Code. Any credit in excess of the tax liability is refundable.
    Sec. 8.  RETROACTIVE APPLICABILITY.  This division of this
 Act applies retroactively to January 1, 2011, for tax years
 beginning on or after that date.
                          DIVISION III
                   SUPPLEMENTAL APPROPRIATIONS
    Sec. 9.  DEPARTMENT OF EDUCATION ==== COMMUNITY
 COLLEGES.  After applying the reductions made pursuant to 2010
 Iowa Acts, chapter 1193, section 27, to the appropriations made
 for the following designated purposes, there is appropriated
 from the general fund of the state to the department of
 education for the fiscal year beginning July 1, 2010, and
 ending June 30, 2011, the following amounts, or so much thereof
 as is necessary, to supplement the appropriations made for the
 following designated purposes:
    1.  MERGED AREA I ==== NORTHEAST IOWA COMMUNITY COLLEGE
    For general state financial aid for merged area I, in
 2010 Iowa Acts, chapter 1183, section 6, subsection 19, and
 reflecting a corrective addition of $4,474 in the overall
 amount appropriated for the merged area's general state
 financial aid for the fiscal year:
 .................................................. $    298,883
    2.  MERGED AREA II ==== NORTH IOWA AREA COMMUNITY COLLEGE
    For general state financial aid for merged area II, in
 2010 Iowa Acts, chapter 1183, section 6, subsection 20, and
 reflecting a corrective reduction of $28,512 in the overall
 amount appropriated for the merged area's general state
 financial aid for the fiscal year:
 .................................................. $    286,545
    3.  MERGED AREA III ==== IOWA LAKES COMMUNITY COLLEGE
    For general state financial aid for merged area III, in
 2010 Iowa Acts, chapter 1183, section 6, subsection 21, and
 reflecting a corrective reduction of $32,233 in the overall
 amount appropriated for the merged area's general state
 financial aid for the fiscal year:
 .................................................. $    257,873
    4.  MERGED AREA IV ==== NORTHWEST COMMUNITY COLLEGE
    For general state financial aid for merged area IV, in
 2010 Iowa Acts, chapter 1183, section 6, subsection 22, and
 reflecting a corrective reduction of $13,939 in the overall
 amount appropriated for the merged area's general state
 financial aid for the fiscal year:
 .................................................. $    128,526
    5.  MERGED AREA V ==== IOWA CENTRAL COMMUNITY COLLEGE
    For general state financial aid for merged area V, in
 2010 Iowa Acts, chapter 1183, section 6, subsection 23, and
 reflecting a corrective addition of $18,745 in the overall
 amount appropriated for the merged area's general state
 financial aid for the fiscal year:
 .................................................. $    344,251
    6.  MERGED AREA VI ==== IOWA VALLEY COMMUNITY COLLEGE DISTRICT
    For general state financial aid for merged area VI, in
 2010 Iowa Acts, chapter 1183, section 6, subsection 24, and
 reflecting a corrective reduction of $25,507 in the overall
 amount appropriated for the merged area's general state
 financial aid for the fiscal year:
 .................................................. $    251,942
    7.  MERGED AREA VII ==== HAWKEYE COMMUNITY COLLEGE
    For general state financial aid for merged area VII, in
 2010 Iowa Acts, chapter 1183, section 6, subsection 25, and
 reflecting a corrective reduction of $11,837 in the overall
 amount appropriated for the merged area's general state
 financial aid for the fiscal year:
 .................................................. $    401,298
    8.  MERGED AREA IX ==== EASTERN IOWA COMMUNITY COLLEGE
    For general state financial aid for merged area IX, in
 2010 Iowa Acts, chapter 1183, section 6, subsection 26, and
 reflecting a corrective reduction of $4,921 in the overall
 amount appropriated for the merged area's general state
 financial aid for the fiscal year:
 .................................................. $    508,961
    9.  MERGED AREA X ==== KIRKWOOD COMMUNITY COLLEGE
    For general state financial aid for merged area X, in
 2010 Iowa Acts, chapter 1183, section 6, subsection 27, and
 reflecting a corrective addition of $55,034 in the overall
 amount appropriated for the merged area's general state
 financial aid for the fiscal year:
 .................................................. $    959,044
    10.  MERGED AREA XI ==== DES MOINES AREA COMMUNITY COLLEGE
    For general state financial aid for merged area XI, in
 2010 Iowa Acts, chapter 1183, section 6, subsection 28, and
 reflecting a corrective addition of $106,395 in the overall
 amount appropriated for the merged area's general state
 financial aid for the fiscal year:
 .................................................. $  1,016,636
    11.  MERGED AREA XII ==== WESTERN IOWA TECH COMMUNITY COLLEGE
    For general state financial aid for merged area XII, in
 2010 Iowa Acts, chapter 1183, section 6, subsection 29, and
 reflecting a corrective reduction of $8,974 in the overall
 amount appropriated for the merged area's general state
 financial aid for the fiscal year:
 .................................................. $    328,413
    12.  MERGED AREA XIII ==== IOWA WESTERN COMMUNITY COLLEGE
    For general state financial aid for merged area XIII, in
 2010 Iowa Acts, chapter 1183, section 6, subsection 30, and
 reflecting a corrective addition of $9,196 in the overall
 amount appropriated for the merged area's general state
 financial aid for the fiscal year:
 .................................................. $    355,950
    13.  MERGED AREA XIV ==== SOUTHWESTERN COMMUNITY COLLEGE
    For general state financial aid for merged area XIV, in
 2010 Iowa Acts, chapter 1183, section 6, subsection 31, and
 reflecting a corrective reduction of $12,340 in the overall
 amount appropriated for the merged area's general state
 financial aid for the fiscal year:
 .................................................. $    132,279
    14.  MERGED AREA XV ==== INDIAN HILLS COMMUNITY COLLEGE
    For general state financial aid for merged area XV, in
 2010 Iowa Acts, chapter 1183, section 6, subsection 32, and
 reflecting a corrective reduction of $43,717 in the overall
 amount appropriated for the merged area's general state
 financial aid for the fiscal year:
 .................................................. $    409,622
    15.  MERGED AREA XVI ==== SOUTHEASTERN COMMUNITY COLLEGE
    For general state financial aid for merged area XVI, in
 2010 Iowa Acts, chapter 1183, section 6, subsection 33, and
 reflecting a corrective reduction of $11,864 in the overall
 amount appropriated for the merged area's general state
 financial aid for the fiscal year:
 .................................................. $    248,098
    16.  COMMUNITY COLLEGE SALARIES.  For distribution to
 community colleges to supplement faculty salaries, in 2010 Iowa
 Acts, chapter 1183, section 8:
 .................................................. $     20,415
    Sec. 10.  DEPARTMENT OF CORRECTIONS.  After applying the
 reductions made pursuant to 2010 Iowa Acts, chapter 1193,
 section 27, and any transfers made pursuant to 2010 Iowa Acts,
 chapter 1193, section 28, to the appropriations made for the
 following designated purposes, there is appropriated from the
 general fund of the state to the department of corrections
 for the fiscal year beginning July 1, 2010, and ending June
 30, 2011, the following amounts, or so much thereof as is
 necessary, to supplement the appropriations made for the
 following designated purposes:
    1.  For the operation of adult correctional institutions in
 2010 Iowa Acts, chapter 1190, section 3, subsection 1, to be
 allocated as follows:
    a.  For the operation of the Fort Madison correctional
 facility in 2010 Iowa Acts, chapter 1190, section 3, subsection
 1, paragraph "a":
 .................................................. $  1,920,083
    b.  For the operation of the Anamosa correctional facility
 in 2010 Iowa Acts, chapter 1190, section 3, subsection 1,
 paragraph "b":
 .................................................. $  1,293,060
    c.  For the operation of the Oakdale correctional facility
 in 2010 Iowa Acts, chapter 1190, section 3, subsection 1,
 paragraph "c":
 .................................................. $  2,385,141
    d.  For the operation of the Newton correctional facility
 in 2010 Iowa Acts, chapter 1190, section 3, subsection 1,
 paragraph "d":
 .................................................. $  1,101,460
    e.  For the operation of the Mount Pleasant correctional
 facility in 2010 Iowa Acts, chapter 1190, section 3, subsection
 1, paragraph "e":
 .................................................. $  1,359,865
    f.  For the operation of the Rockwell City correctional
 facility in 2010 Iowa Acts, chapter 1190, section 3, subsection
 1, paragraph "f":
 .................................................. $    412,008
    g.  For the operation of the Clarinda correctional facility
 in 2010 Iowa Acts, chapter 1190, section 3, subsection 1,
 paragraph "g":
 .................................................. $  1,180,617
    h.  For the operation of the Mitchellville correctional
 facility in 2010 Iowa Acts, chapter 1190, section 3, subsection
 1, paragraph "h":
 .................................................. $    504,674
    i.  For the operation of the Fort Dodge correctional facility
 in 2010 Iowa Acts, chapter 1190, section 3, subsection 1,
 paragraph "i":
 .................................................. $  1,162,060
    2.  For general administration in 2010 Iowa Acts, chapter
 1190, section 4, subsection 1, paragraph "a":
 .................................................. $    110,202
    3.  For the judicial district departments of correctional
 services in 2010 Iowa Acts, chapter 1190, section 5, subsection
 1, to be allocated as follows:
    a.  For the first judicial district department of
 correctional services in 2010 Iowa Acts, chapter 1190, section
 5, subsection 1, paragraph "a":
 .................................................. $    393,353
    b.  For the second judicial district department of
 correctional services in 2010 Iowa Acts, chapter 1190, section
 5, subsection 1, paragraph "b":
 .................................................. $    360,912
    c.  For the third judicial district department of
 correctional services in 2010 Iowa Acts, chapter 1190, section
 5, subsection 1, paragraph "c":
 .................................................. $    221,793
    d.  For the fourth judicial district department of
 correctional services in 2010 Iowa Acts, chapter 1190, section
 5, subsection 1, paragraph "d":
 .................................................. $    169,067
    e.  For the fifth judicial district department of
 correctional services in 2010 Iowa Acts, chapter 1190, section
 5, subsection 1, paragraph "e":
 .................................................. $    723,637
    f.  For the sixth judicial district department of
 correctional services in 2010 Iowa Acts, chapter 1190, section
 5, subsection 1, paragraph "f":
 .................................................. $    460,329
    g.  For the seventh judicial district department of
 correctional services in 2010 Iowa Acts, chapter 1190, section
 5, subsection 1, paragraph "g":
 .................................................. $    265,431
    h.  For the eighth judicial district department of
 correctional services in 2010 Iowa Acts, chapter 1190, section
 5, subsection 1, paragraph "h":
 .................................................. $    177,991
    Sec. 11.  STATE PUBLIC DEFENDER.  After applying the
 reductions made pursuant to 2010 Iowa Acts, chapter 1193,
 section 27, to the appropriations made for the following
 designated purposes, there is appropriated from the general
 fund of the state to  the office of the state public defender of
 the department of inspections and appeals for the fiscal year
 beginning July 1, 2010, and ending June 30, 2011, the following
 amounts, or so much thereof as is necessary, to supplement the
 appropriations made for the following designated purposes:
    1.  For the office of the state public defender, in 2010 Iowa
 Acts, chapter 1190, section 10, subsection 1:
 .................................................. $  2,551,500
    2.  For the fees of court=appointed attorneys for indigent
 adults and juveniles, in accordance with section 232.141 and
 chapter 815, in 2010 Iowa Acts, chapter 1190, section 10,
 subsection 2:
 .................................................. $ 16,000,000
    Sec. 12.  DEPARTMENT OF PUBLIC SAFETY.  After applying the
 reductions made pursuant to 2010 Iowa Acts, chapter 1193,
 section 27, and any transfers made pursuant to 2010 Iowa Acts,
 chapter 1193, section 28, to the appropriations made for the
 following designated purposes, there is appropriated from
 the general fund of the state to the department of public
 safety for the fiscal year beginning July 1, 2010, and ending
 June 30, 2011, the following amounts, or so much thereof as
 is necessary, to supplement the appropriations made for the
 following designated purposes:
    1.  For the department's administrative functions in 2010
 Iowa Acts, chapter 1190, section 14, subsection 1:
 .................................................. $    275,000
    2.  For the division of criminal investigation in 2010 Iowa
 Acts, chapter 1190, section 14, subsection 2:
 .................................................. $    325,000
    3.  For the division of narcotics enforcement in 2010 Iowa
 Acts, chapter 1190, section 14, subsection 4, paragraph "a":
 .................................................. $    225,000
    4.  For the division of state fire marshal in 2010 Iowa Acts,
 chapter 1190, section 14, subsection 5:
 .................................................. $    130,000
    5.  For the division of state patrol in 2010 Iowa Acts,
 chapter 1190, section 14, subsection 6:
 .................................................. $  2,000,000
    Sec. 13.  DEPARTMENT OF PUBLIC HEALTH.  After applying the
 reductions made pursuant to 2010 Iowa Acts, chapter 1193,
 section 27, and any transfers made pursuant to 2010 Iowa Acts,
 chapter 1193, section 28, to the appropriations made for the
 following designated purposes, there is appropriated from
 the general fund of the state to the department of public
 health for the fiscal year beginning July 1, 2010, and ending
 June 30, 2011, the following amounts, or so much thereof as
 is necessary, to supplement the appropriations made for the
 following designated purposes:
    1.  For addictive disorders, in 2010 Iowa Acts, chapter 1192,
 section 2, subsection 1:
 .................................................. $    675,896
    2.  For healthy children and families, in 2010 Iowa Acts,
 chapter 1192, section 2, subsection 2:
 .................................................. $     68,192
    3.  For community capacity, in 2010 Iowa Acts, chapter 1192,
 section 2, subsection 4:
 .................................................. $     13,275
    4.  For healthy aging, in 2010 Iowa Acts, chapter 1192,
 section 2, subsection 5:
 .................................................. $    403,500
    5.  For infectious diseases, in 2010 Iowa Acts, chapter 1192,
 section 2, subsection 7:
 .................................................. $     51,688
    Sec. 14.  DEPARTMENT OF HUMAN SERVICES ====
 APPROPRIATIONS.  After applying the reductions made pursuant
 to 2010 Iowa Acts, chapter 1193, section 27, and any transfers
 made pursuant to 2010 Iowa Acts, chapter 1193, section 28, to
 the appropriations made for the following designated purposes,
 there is appropriated from the general fund of the state to the
 department of human services for the fiscal year beginning July
 1, 2010, and ending June 30, 2011, the following amounts, or so
 much thereof as is necessary, to supplement the appropriations
 made for the following designated purposes:
    1.  For the state mental health institute at Cherokee,
 in 2010 Iowa Acts, chapter 1192, section 24, subsection 1,
 paragraph "a":
 .................................................. $    784,607
    2.  For the state mental health institute at Clarinda,
 in 2010 Iowa Acts, chapter 1192, section 24, subsection 1,
 paragraph "b":
 .................................................. $    623,793
    3.  For the state mental health institute at Independence,
 in 2010 Iowa Acts, chapter 1192, section 24, subsection 1,
 paragraph "c":
 .................................................. $  1,235,916
    Sec. 15.  2010 Iowa Acts, chapter 1193, section 84,
 subsection 2, unnumbered paragraph 1, is amended to read as
 follows:
    For the duties of the office of the state debt coordinator
 established in 2010 Iowa Acts, Senate File 2383, if enacted,
 including salaries, support, maintenance, services,
 advertising, miscellaneous purposes, and for not more than the
 following full=time equivalent positions:
 .................................................. $    300,000   ........................................... F
 3.00
    Beginning on the effective date of this division of this 2011
 Iowa Act, moneys appropriated in this subsection that remain
 unencumbered or unobligated shall be used by the department of
 revenue for the administrative costs associated with state tax
 processing.
    Sec. 16.  EFFECTIVE UPON ENACTMENT.  This division of this
 Act, being deemed of immediate importance, takes effect upon
 enactment.
                           DIVISION IV
                      CORRECTIVE PROVISIONS
    Sec. 17.  2010 Iowa Acts, chapter 1193, section 199, is
 amended to read as follows:
    SEC. 199.  TERRACE HILL ==== GENERAL FUND ==== DEPARTMENT OF
 ADMINISTRATIVE SERVICES.  There is appropriated from the
 general fund of the state to the department of administrative
 services for the fiscal year beginning July 1, 2009 2010,
 and ending June 30, 2010 2011, the following amount, or so
 much thereof as is necessary, to be used for the purposes
 designated:
    For salaries, support, maintenance, and miscellaneous
 purposes necessary for the operation of Terrace Hill, and for
 not more than the following full=time equivalent positions:
 .................................................. $    263,329
 ............................................... FTEs       6.38
    Sec. 18.  EFFECTIVE UPON ENACTMENT AND RETROACTIVE
 APPLICABILITY.  This division of this Act, being deemed of
 immediate importance, takes effect upon enactment. The section
 of this division of this Act amending 2010 Iowa Acts, chapter
 1193, section 199, applies retroactively to April 29, 2010.
                           DIVISION V
                   IOWA COMMUNICATIONS NETWORK
    Sec. 19.  IOWA COMMUNICATIONS NETWORK ==== AUTHORIZATION
 FOR CONTRACTS.  Pursuant to section 8D.11, subsection 1,
 paragraph "a", the general assembly authorizes the Iowa
 telecommunications and technology commission to enter
 into contracts in excess of the contract limitation amount
 established in section 8D.11, subsection 1, paragraph "c",
 for purposes of the commission's project associated with the
 federal grant awarded to the commission under the federal
 broadband technology opportunities program.  This authorization
 applies for the duration of the commission's project and to
 all affected contracts associated with the project and project
 funding.
    Sec. 20.  EFFECTIVE UPON ENACTMENT.  This division of this
 Act, being deemed of immediate importance, takes effect upon
 enactment.
                           DIVISION VI
  ADULT MENTAL HEALTH AND INTELLECTUAL AND OTHER DEVELOPMENTAL
               DISABILITIES SERVICES SYSTEM REFORM
    Sec. 21.  ADULT MENTAL HEALTH AND INTELLECTUAL AND
 OTHER DEVELOPMENTAL DISABILITIES SERVICES SYSTEM REFORM ==
 APPROPRIATION.
    1.  There is appropriated from the general fund of the
 state to the department of human services for the fiscal year
 beginning July 1, 2010, and ending June 30, 2011, the following
 amount, or so much thereof as is necessary, to be used for the
 purposes designated:
    To be credited to the property tax relief fund created
 in chapter 426B and for distribution in accordance with
 appropriations made from the property tax relief fund enacted
 by the Eighty=fourth General Assembly, 2011 Session, pursuant
 to recommendations by the general assembly's committees
 on appropriations, to address needs in the publicly funded
 adult mental health and intellectual and other developmental
 disability services system, which may include but are not
 limited to eliminating county waiting lists or providing risk
 pool funding:
 .................................................. $ 20,000,000
    2.  It is the intent of the general assembly to enact
 legislation providing for the reform of the publicly funded
 adult mental health and intellectual and other developmental
 disability services system and to implement a new services
 system structure by July 1, 2013, when the repeals contained in
 this division of this Act take effect.
    Sec. 22.  Section 331.424A, Code 2011, is amended by adding
 the following new subsection:
    NEW SUBSECTION.  6.  This section is repealed July 1, 2013.
    Sec. 23.  Section 331.438, Code 2011, is amended by adding
 the following new subsection:
    NEW SUBSECTION.  5.  This section is repealed July 1, 2013.
    Sec. 24.  Section 331.439, Code 2011, is amended by adding
 the following new subsection:
    NEW SUBSECTION.  10.  This section is repealed July 1, 2013.
    Sec. 25.  Section 331.440, Code 2011, is amended by adding
 the following new subsection:
    NEW SUBSECTION.  7.  This section is repealed July 1, 2013.
    Sec. 26.  NEW SECTION.  426B.6  Future repeal.
    This chapter is repealed July 1, 2013.
    Sec. 27.  EFFECTIVE UPON ENACTMENT.  This division of this
 Act, being deemed of immediate importance, takes effect upon
 enactment.
                          DIVISION VII
                      TAXPAYERS TRUST FUND
    Sec. 28.  Section 8.54, subsection 5, Code 2011, is amended
 to read as follows:
    5.  For fiscal years in which it is anticipated that the
 distribution of moneys from the Iowa economic emergency fund in
 accordance with section 8.55, subsection 2, results will result
  in moneys being transferred to the general fund, the original
 state general fund expenditure limitation amount provided for
 in subsection 3 shall be readjusted to include the amount of
  moneys which are so anticipated to be so transferred.
    Sec. 29.  Section 8.55, subsection 2, Code 2011, is amended
 to read as follows:
    2.  a.  The maximum balance of the fund is the amount equal
 to two and one=half percent of the adjusted revenue estimate
 for the fiscal year. If the amount of moneys in the Iowa
 economic emergency fund is equal to the maximum balance, moneys
 in excess of this amount shall be transferred to the general
 fund. distributed as follows:
    (1)  The first sixty million dollars of the difference
 between the actual net revenue for the general fund of the
 state for the fiscal year and the adjusted revenue estimate for
 the fiscal year shall be transferred to the taxpayers trust
 fund.
    (2)  The remainder of the excess, if any, shall be
 transferred to the general fund of the state.
    b.  Notwithstanding paragraph "a", any moneys in excess
 of the maximum balance in the economic emergency fund after
 the distribution of the surplus in the general fund of the
 state at the conclusion of each fiscal year shall not be
 transferred to the general fund of the state distributed as
 provided in paragraph "a" but shall be transferred to the senior
 living trust fund. The total amount appropriated, reverted,
 or transferred, in the aggregate, under this paragraph,
 section 8.57, subsection 2, and any other law providing for
 an appropriation or reversion or transfer of an appropriation
 to the credit of the senior living trust fund, for all fiscal
 years beginning on or after July 1, 2004, shall not exceed the
 amount specified in section 8.57, subsection 2, paragraph "c".
    Sec. 30.  NEW SECTION.  8.57E  Taxpayers trust fund.
    1.  A taxpayers trust fund is created.  The fund shall be
 separate from the general fund of the state and the balance in
 the fund shall not be considered part of the balance of the
 general fund of the state. The moneys credited to the fund
 are not subject to section 8.33 and shall not be transferred,
 used, obligated, appropriated, or otherwise encumbered except
 as provided in this section.
    2.  Moneys in the taxpayers trust fund shall only be used
 pursuant to appropriations made by the general assembly for tax
 relief.
    3.  a.  Moneys in the taxpayer's trust fund may be used
 for cash flow purposes during a fiscal year provided that any
 moneys so allocated are returned to the fund by the end of that
 fiscal year.
    b.  Except as provided in section 8.58, the taxpayers trust
 fund shall be considered a special account for the purposes of
 section 8.53 in determining the cash position of the general
 fund of the state for the payment of state obligations.
    4.  Notwithstanding section 12C.7, subsection 2, interest or
 earnings on moneys deposited in the taxpayers trust fund shall
 be credited to the fund.
    Sec. 31.  Section 8.58, Code 2011, is amended to read as
 follows:
    8.58  Exemption from automatic application.
    1.  To the extent that moneys appropriated under section
 8.57 do not result in moneys being credited to the general
 fund under section 8.55, subsection 2, moneys appropriated
 under section 8.57 and moneys contained in the cash reserve
 fund, rebuild Iowa infrastructure fund, environment first fund,
 and Iowa economic emergency fund, and taxpayers trust fund
  shall not be considered in the application of any formula,
 index, or other statutory triggering mechanism which would
 affect appropriations, payments, or taxation rates, contrary
 provisions of the Code notwithstanding.
    2.  To the extent that moneys appropriated under section
 8.57 do not result in moneys being credited to the general fund
 under section 8.55, subsection 2, moneys appropriated under
 section 8.57 and moneys contained in the cash reserve fund,
 rebuild Iowa infrastructure fund, environment first fund, and
  Iowa economic emergency fund, and taxpayers trust fund shall
 not be considered by an arbitrator or in negotiations under
 chapter 20.
    Sec. 32.  APPLICABILITY.  The amendments in this division of
 this Act to sections 8.54 and 8.55 apply to moneys attributed
 to fiscal years beginning on or after July 1, 2011.


                                                             
                               JOHN P. KIBBIE
                               President of the Senate


                                                             
                               KRAIG PAULSEN
                               Speaker of the House
    I hereby certify that this bill originated in the Senate and
 is known as Senate File 209, Eighty=fourth General Assembly.


                                                             
                               MICHAEL E. MARSHALL
                               Secretary of the Senate
 Approved                , 2011


                                                             
                               TERRY E. BRANSTAD
                               Governor

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