8.56 - CASH RESERVE FUND.
8.56 CASH RESERVE FUND.
1. A cash reserve fund is created in the state treasury. The
cash reserve fund shall be separate from the general fund of the
state and shall not be considered part of the general fund of the
state except in determining the cash position of the state as
provided in subsection 3. The moneys in the cash reserve 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. Notwithstanding section 12C.7, subsection 2,
interest or earnings on moneys deposited in the cash reserve fund
shall be credited to the rebuild Iowa infrastructure fund created in
section 8.57. Moneys in the cash reserve fund may be used for cash
flow purposes during a fiscal year provided that any moneys so
allocated are returned to the cash reserve fund by the end of that
fiscal year.
2. The maximum balance of the cash reserve fund is the amount
equal to the cash reserve goal percentage, as defined in section
8.57, multiplied by the adjusted revenue estimate for the general
fund of the state for the current fiscal year.
3. The moneys in the cash reserve fund shall only be used
pursuant to an appropriation made by the general assembly. An
appropriation shall be made in accordance with subsection 4 only for
the fiscal year in which the appropriation is made. The moneys shall
only be appropriated by the general assembly for nonrecurring
emergency expenditures and shall not be appropriated for payment of
any collective bargaining agreement or arbitrator's decision
negotiated or awarded under chapter 20. Except as provided in
section 8.58, the cash reserve 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. a. Except as provided in subsection 1, an appropriation
shall not be made from the cash reserve fund unless the appropriation
is in accordance with all of the following:
(1) The appropriation is contained in a bill or joint resolution
in which the appropriation is the only subject matter of the bill or
joint resolution.
(2) The bill or joint resolution states the reasons the
appropriation is necessary.
b. In addition to the requirements of paragraph "a", an
appropriation shall not be made from the cash reserve fund which
would cause the fund's balance to be less than three and
three-fourths percent of the adjusted revenue estimate for the year
for which the appropriation is made unless the bill or joint
resolution is approved by vote of at least three-fifths of the
members of both chambers of the general assembly and is signed by the
governor. Section History: Recent Form
92 Acts, ch 1227, § 6; 94 Acts, ch 1181, §9; 95 Acts, ch 214, §
14; 2001 Acts, 2nd Ex, ch 6, §29--31; 2002 Acts, 2nd Ex, ch 1001,
§27, 33; 2003 Acts, ch 179, §40
Referred to in § 8.54, 8.62