PRIOR PRINTER'S NO. 223 PRINTER'S NO. 1346
No. 197 Session of 1989
INTRODUCED BY LEVDANSKY, MANDERINO, TRELLO, RYAN, O'DONNELL, HAYES, PIEVSKY, RAYMOND, ITKIN, FREEMAN, GANNON, COWELL, BUNT, VEON, LASHINGER, RITTER, KUKOVICH, CESSAR, MICHLOVIC, KENNEY, FOSTER, MURPHY, VAN HORNE, J. TAYLOR, GAMBLE, GEIST, DeLUCA, LANGTRY, JOSEPHS, McVERRY, COHEN, FARGO, FOX, D. W. SNYDER, BELFANTI, ARGALL, McHALE, CHADWICK, D. R. WRIGHT, NAHILL, BORTNER, REINARD, McCALL, BOYES, DeWEESE, SCHEETZ, CAPPABIANCA, GODSHALL, WOGAN, MRKONIC, KOSINSKI, COLE, OLIVER, BELARDI, TIGUE, BLAUM, B. SMITH, PISTELLA, MAYERNIK, GRUITZA, HAGARTY, B. D. CLARK, MAINE, FLICK, KASUNIC, COLAFELLA, SEMMEL, RICHARDSON, GRUPPO, HUGHES, LaGROTTA, BLACK, PRESTON, JADLOWIEC, FEE, MOEHLMANN, GEORGE, CAWLEY, WOZNIAK, LINTON, PRESSMANN, HERSHEY, PETRONE, CARN, HAYDEN, LUCYK, BATTISTO, BROUJOS, CALTAGIRONE, PITTS, MARKOSEK, HERMAN, DOMBROWSKI, RYBAK, DEMPSEY, LETTERMAN, E. Z. TAYLOR, GIGLIOTTI, MORRIS, MICOZZIE, J. H. CLARK, HESS AND TRICH, FEBRUARY 1, 1989
AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF REPRESENTATIVES, AS AMENDED, APRIL 17, 1989
AN ACT 1 Amending the act of April 9, 1929 (P.L.177, No.175), entitled 2 "An act providing for and reorganizing the conduct of the 3 executive and administrative work of the Commonwealth by the 4 Executive Department thereof and the administrative 5 departments, boards, commissions, and officers thereof, 6 including the boards of trustees of State Normal Schools, or 7 Teachers Colleges; abolishing, creating, reorganizing or 8 authorizing the reorganization of certain administrative 9 departments, boards, and commissions; defining the powers and 10 duties of the Governor and other executive and administrative 11 officers, and of the several administrative departments, 12 boards, commissions, and officers; fixing the salaries of the 13 Governor, Lieutenant Governor, and certain other executive 14 and administrative officers; providing for the appointment of 15 certain administrative officers, and of all deputies and 16 other assistants and employes in certain departments, boards, 17 and commissions; and prescribing the manner in which the 18 number and compensation of the deputies and all other
1 assistants and employes of certain departments, boards and 2 commissions shall be determined," providing for the 3 submission to the General Assembly of information relating to 4 tax expenditures. 5 It is the intent of this act to provide a mechanism which 6 will enable the General Assembly to better determine those 7 programs, activities and groups which are receiving public 8 support subsidies as a result of tax expenditures. The General 9 Assembly recognizes that the present budgeting system fails to 10 accurately and totally reflect the true level of budgetary 11 support for such programs due to such tax expenditures and that, 12 as a result, undetermined amounts of indirect expenditures are 13 escaping public or legislative scrutiny. The loss of potential 14 revenue also causes a narrowing of tax bases which in turn 15 forces higher tax rates on the remaining taxpayers. 16 The General Assembly of the Commonwealth of Pennsylvania 17 hereby enacts as follows: 18 Section 1. The act of April 9, 1929 (P.L.177, No.175), known 19 as The Administrative Code of 1929, is amended by adding 20 sections to read: 21 Section 622. Tax Expenditures.--(a) As used in this section 22 "tax expenditure" shall mean a reduction in revenue that would 23 otherwise be collected by the Commonwealth as the result of an 24 exemption, reduction, deduction, limitation, exclusion, tax 25 deferral, discount, refund, commission, credit, preferential 26 rate or preferential treatment. "Tax expenditure" shall include, 27 but not be limited to, the following: 28 (1) Sales tax imposed by Article II of the act of March 4, 29 1971 (P.L.6, No.2), known as the "Tax Reform Code of 1971": 30 (i) The exclusions itemized in section 204, each of which 31 shall be considered a separate tax expenditure. 19890H0197B1346 - 2 -
1 (ii) The exclusions described by section 201(c)(1) through 2 (5), (c.1) and (d)(1) through (12), each of which may be 3 combined with the related exclusion described in section 201(o) 4 and shall be considered a separate tax expenditure. 5 (iii) The exclusion described by section 201(k)(8)(A) and 6 (o)(4)(B)(i). 7 (iv) The exclusion described by section 201(k)(8)(B) and 8 (o)(4)(B)(ii). 9 (v) The exclusion described by section 201(k)(8)(C) and 10 (o)(4)(B)(iii). 11 (vi) The exclusion described by section 201(k)(8)(D) and 12 (o)(4)(B)(iv). 13 (vii) The deduction described in section 201(g)(2). 14 (viii) The reduction authorized in section 201(g)(5). 15 (ix) The exclusions described in section 201(i)(1) through 16 (5), each of which shall be considered a separate tax 17 expenditure. 18 (x) The exclusion of household supplies described in section 19 201(m). 20 (xi) The exclusions of residential utility services itemized 21 in section 201(m), each of which shall be considered a separate 22 tax expenditure. 23 (xii) The exclusion of wearing apparel and shoes as 24 described in section 201(k)(4) and (o)(4). 25 (xiii) The exclusion described in section 201(o)(8). 26 (xiv) The reduction afforded by the computation provided for 27 in section 202(d) as opposed to the tax that would be due 28 computing it as required by section 203. 29 (xv) The reduction authorized in section 205(a). 30 (xvi) The reduction authorized in section 205(b). 19890H0197B1346 - 3 -
1 (xvii) The credit authorized in section 206. 2 (xviii) The exclusions itemized in 61 Pa. Code § 31.6(a) 3 (relating to persons rendering nontaxable services), each of 4 which shall be considered a separate tax expenditure. 5 (xix) The exclusion of "permanent residents" from the tax 6 imposed by section 210. 7 (xx) The discount authorized by section 227. 8 (xxi) Refunds resulting from petitions filed pursuant to 9 section 253(d). 10 (xxii) Nontaxation of the following items shall be 11 considered tax expenditures: 12 (A) Country club memberships. 13 (B) Services of stenographers and reporters. 14 (C) Accounting, auditing and bookkeeping services. 15 (D) Cable TV rental. 16 (E) Barbers', beauticians' and manicurists' services. 17 (F) Exterminators' services. 18 (G) Janitorial services. 19 (H) Computer and data processing services. 20 (I) Legal services. 21 (J) Services of abstractors, surveyors and architects. 22 (K) Engineering services. 23 (L) Doctors', dentists' and veterinary services. 24 (M) Stockbrokers' services. 25 (N) Real estate agents' services. 26 (O) Insurance agents' services. 27 (P) Services of financial institutions. 28 (Q) Advertising services. 29 (R) Consulting and management services. 30 (S) Research and public relation services. 19890H0197B1346 - 4 -
1 (T) Collection agencies. 2 (U) Detective agencies. 3 (V) Parking lots and parking structures. 4 (W) Entertainers and entertainment groups. 5 (X) Admissions to places of amusement. 6 (Y) Chartered flights and pilots' services. 7 (Z) Campsite and trailer park rental. 8 (AA) Funeral and mortuary services. 9 (BB) Storage charges. 10 (CC) Services of electricians, plumbers and heating and air 11 conditioning contractors. 12 (DD) Other services. 13 (2) Personal income tax imposed by Article III of the "Tax 14 Reform Code of 1971": 15 (i) Each exclusion itemized in section 301(d)(i) through 16 (vii). 17 (ii) Expenses allowed as a deduction against compensation 18 income pursuant to Article III. 19 (iii) Expenses other than depreciation allowed as a 20 deduction against net profits income pursuant to Article III. 21 (iv) Depreciation expenses allowed as a deduction against 22 net profits income pursuant to Article III. 23 (v) The exclusion from "net gains or income" of certain 24 gains on the sale of a principal residence by taxpayers fifty- 25 five years of age or older. 26 (vi) The exclusion from "net gains or income" of gains or 27 income derived from obligations statutorily free from tax under 28 acts of the General Assembly. 29 (vii) The exclusion from "net gains or income" of gains or 30 income derived from obligations statutorily free from tax under 19890H0197B1346 - 5 -
1 the laws of the United States. 2 (viii) The exclusion from interest income of interest 3 statutorily free from tax under acts of the General Assembly. 4 (ix) The exclusion from interest income of interest 5 statutorily free from tax under acts of the United States. 6 (x) The exclusion from income of noncombat military pay. 7 (xi) The exclusion from income of scholarships, grants, 8 fellowships and stipends. 9 (xii) The preferential rate authorized pursuant to section 10 304. 11 (xiii) The credit authorized pursuant to section 314. 12 (xiv) Tax credits taken against the personal income tax 13 pursuant to Article XVII-A. 14 (3) Corporate Net Income Tax imposed by Article IV of the 15 "Tax Reform Code of 1971": 16 (i) Deductions allowed pursuant to section 401(3)1(b). 17 (ii) Deductions allowed pursuant to section 401(3)1(c). 18 (iii) Each of the deductions allowed pursuant to section 19 401(3)1(d)(i) through (ix) shall be considered a separate tax 20 expenditure. 21 (iv) Deductions allowed pursuant to section 401(3)1(h). 22 (v) Deductions allowed pursuant to section 401(3)1(i). 23 (vi) Deductions allowed pursuant to section 401(3)4. 24 (vii) Tax credits taken against the Corporate Net Income Tax 25 pursuant to the act of November 29, 1967 (P.L.636, No.292), 26 known as the "Neighborhood Assistance Act." 27 (viii) Tax credits taken against the Corporate Net Income 28 Tax pursuant to Article XVII-A. 29 (ix) Exclusion of value or income from taxation as a result 30 of the application of the multiform concept. 19890H0197B1346 - 6 -
1 (x) The exclusion of each of the classes of corporations 2 excluded from the definition in section 401(1). 3 (4) Capital Stock/Franchise Tax imposed by Article IV of the 4 "Tax Reform Code of 1971": 5 (i) Tax relief resulting from the exemption of capital stock 6 invested in a manufacturing, processing, research or development 7 plant and business pursuant to section 602. 8 (ii) The preferential calculation afforded to holding 9 companies pursuant to section 602(e). 10 (iii) The preferential calculation afforded to regulated 11 investment companies pursuant to section 602(f). 12 (iv) The exemption of pollution control devices pursuant to 13 section 602.1. 14 (v) The exemption of family farm corporations pursuant to 15 section 602.2. 16 (vi) Tax credits against the Capital Stock/Franchise Tax 17 pursuant to the "Neighborhood Assistance Act." 18 (5) Bank Shares Tax imposed by Article VII of the "Tax 19 Reform Code of 1971": 20 (i) The personal property tax exemption granted to banks 21 which collect the Bank Shares Tax from their shareholders on 22 behalf of the Commonwealth as authorized in section 701. 23 (ii) The exclusion of United States obligations from the tax 24 as described in section 701.1. 25 (iii) Tax credits against this tax pursuant to the 26 Neighborhood Assistance Act. 27 (iv) Tax credits against this tax pursuant to Article XVII- 28 A. 29 (6) Title Insurance and Trust Companies Share Tax imposed by 30 Article VIII of the "Tax Reform Code of 1971": 19890H0197B1346 - 7 -
1 (i) The exemption from the Corporate Net Income Tax and 2 Capital Stock/Franchise Tax granted to companies paying this tax 3 as authorized in section 801. 4 (ii) The exclusion of United States obligations from tax as 5 described in section 801.1. 6 (iii) Tax credits against this tax pursuant to the 7 "Neighborhood Assistance Act." 8 (iv) Tax credits against this tax pursuant to Article XVII- 9 A. 10 (7) Insurance Premiums Tax imposed by Article IX of the "Tax 11 Reform Code of 1971": 12 (i) The exemption granted in section 901(1) to mutual 13 beneficial associations. 14 (ii) The exemptions granted in section 901(1) to 15 corporations organized under the act of June 21, 1937 (P.L.1948, 16 No.378), known as the "Nonprofit Hospital Plan Act," and the act 17 of June 27, 1939 (P.L.1125, No.399), known as the "Nonprofit 18 Medical, Osteopathic, Dental and Podiatry Service Corporation 19 Act." 20 (iii) Tax credits against this tax pursuant to the 21 "Neighborhood Assistance Act." 22 (iv) Tax credits against this tax pursuant to Article XVII- 23 A. 24 (8) Utility Gross Receipts Tax imposed by Article XI of the 25 "Tax Reform Code of 1971": 26 (i) The exemption of sales inside the limits of a 27 municipality owning or operating a public utility pursuant to 28 section 1101(f). 29 (ii) The exemption of certain receipts pursuant to section 30 1101(g). 19890H0197B1346 - 8 -
1 (iii) Tax credits granted pursuant to section 1101.2. 2 (9) Liquid Fuels and Fuel Use Taxes: 3 (i) The exemptions itemized in section 1101-B of the "Tax 4 Reform Code of 1971" and applied against taxes collected 5 pursuant to Article XI-B of the "Tax Reform Code of 1971," the 6 act of May 21, 1931 (P.L.149, No.105), known as "The Liquid 7 Fuels Tax Act," the act of July 12, 1974 (P.L.458, No.161), 8 entitled "An act imposing an additional State tax on certain 9 fuels; providing for collection, lien and administration of the 10 tax; and making an appropriation," the act of January 14, 1952 11 (1951 P.L.1965, No.550), known as the "Fuel Use Tax Act," and 12 Chapter 95 of Title 75 of the Pennsylvania Consolidated Statutes 13 (relating to taxes for highway maintenance and construction). 14 (10) Realty Transfer Tax imposed by Article XI-C of the "Tax 15 Reform Code of 1971": 16 (i) Each of the exemptions listed within section 1102-C.3. 17 (11) Cigarette Tax imposed by Article XII of the "Tax Reform 18 Code of 1971": 19 (i) Each of the exemptions itemized in section 1209(a). 20 (ii) The commission authorized pursuant to section 1216. 21 (12) Mutual Thrift Institutions Tax imposed by Article XV of 22 the "Tax Reform Code of 1971": 23 (i) The personal property tax exemption granted by section 24 1502(e). 25 (ii) The net operating loss carryover authorized by section 26 1502(d). 27 (iii) Tax credits taken against this tax pursuant to the 28 "Neighborhood Assistance Act." 29 (iv) Tax credits taken against this tax pursuant to Article 30 XVII-A. 19890H0197B1346 - 9 -
1 (13) Oil Company Franchise Tax imposed by Chapter 95 of 2 Title 75 of the Pennsylvania Consolidated Statutes: 3 (i) The exclusion from the definition of "petroleum 4 products" in section 9501 of Title 75 of the Pennsylvania 5 Consolidated Statutes (relating to definitions) of products not 6 used for the generation of power to propel motor vehicles on the 7 public highways. 8 (14) Motor Carriers Road Tax imposed by Chapter 96 of Title 9 75 of the Pennsylvania Consolidated Statutes (relating to motor 10 carriers road tax): 11 (i) The exemptions itemized in section 9910 (relating to 12 exemptions from tax). 13 (15) Inheritance Tax imposed by Chapter 17 of Title 72 of 14 the Pennsylvania Consolidated Statutes (relating to inheritance 15 and estate taxes): 16 (i) The exception provided in section 1708(b) (relating to 17 joint tenancy). 18 (ii) Each of the exemptions enumerated in section 1711(b) 19 through (r) (relating to transfers not subject to tax). 20 (iii) The preferential valuation described in section 21 1722(b) (relating to valuation of certain farmland). 22 (iv) The deductions authorized pursuant to section 1727 23 (relating to expenses). 24 (v) Interest abatements as a result of the extended payment 25 schedule authorized in section 1754(a) (relating to payment of 26 tax for small business transfers). 27 (16) Unemployment Compensation Contributions imposed by the 28 act of December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), 29 known as the "Unemployment Compensation Law": 30 (i) The limitation on the taxable wage base provided for in 19890H0197B1346 - 10 -
1 section 4(x)(1). 2 (17) Utility Realty Tax imposed by Article XI-A of the "Tax 3 Reform Code of 1971": 4 (i) Each of the exemptions enumerated in the definition of 5 "utility realty" in section 1101-A. 6 (ii) The exemptions granted in section 1102-A(d). 7 (18) Gross Receipts Tax on Motor Carriers imposed by the act 8 of June 22, 1931 (P.L.694, No.255), referred to as the Motor 9 Carriers Gross Receipts Tax Act: 10 (i) The preferential rate at which this tax is imposed 11 relative to other utility gross receipts taxed pursuant to 12 Article XI of the "Tax Reform Code of 1971." 13 (ii) The deduction authorized in section 3 for excise taxes 14 paid to local governments. 15 (iii) The credit authorized in section 3 for registration 16 fees paid to the Commonwealth. 17 (19) Marine Insurance Underwriting Profits Tax imposed by 18 the act of May 13, 1927 (P.L.998, No.486), entitled "An act 19 imposing a tax for State purposes on marine insurance 20 underwriting profits, and providing for the collection of such 21 tax": 22 (i) The preferential treatment afforded by taxing marine 23 insurers as required in this act rather than at the rate and in 24 the manner prescribed in Article IX of the "Tax Reform Code of 25 1971." 26 (20) Co-operative Agricultural Association Corporate Net 27 Income Tax imposed pursuant to the act of May 23, 1945 (P.L.893, 28 No.360), known as the "Co-operative Agricultural Association 29 Corporate Net Income Tax Act": 30 (i) The preferential treatment afforded by taxing Co- 19890H0197B1346 - 11 -
1 operative Agricultural Associations on the base and at the rate 2 required in the Co-operative Agricultural Association Corporate 3 Net Income Tax Act rather than on the base and at the rate 4 prescribed by Article IV of the "Tax Reform Code of 1971." 5 (ii) Other exclusions from State taxes authorized pursuant 6 to section 3. 7 (iii) Exclusions from county taxes authorized pursuant to 8 section 3. 9 (21) Electric Co-operative Corporation Tax imposed by the 10 act of June 21, 1937 (P.L.1969, No.389), known as the "Electric 11 Cooperative Corporation Act": 12 (i) The exemption from all other State taxes granted in 13 section 31. 14 (22) Malt Beverage Tax imposed by the act of May 5, 1933 15 (P.L.284, No.104), known as the "Malt Beverage Tax Law": 16 (i) The tax credit provided by section 10.1. 17 (23) Spirituous and Vinous Liquors Tax imposed by the act of 18 December 5, 1933 (Sp.Sess., P.L.38, No.6), known as the 19 "Spirituous and Vinous Liquor Tax Law": 20 (i) The exception granted in section 19. 21 (ii) Refunds available pursuant to section 21. 22 (24) Property Taxes: 23 (i) The reduction in tax resulting from assessment pursuant 24 to the act of December 19, 1974 (P.L.973, No.319), known as the 25 "Pennsylvania Farmland and Forest Land Assessment Act of 1974." 26 (ii) The exemption from tax required by section 2(c) of 27 Article VIII of the Constitution of Pennsylvania. 28 (iii) The exemptions granted pursuant to section 204 of the 29 act of May 22, 1933 (P.L.853, No.155), known as "The General 30 County Assessment Law," and section 202 of the act of May 21, 19890H0197B1346 - 12 -
1 1943 (P.L.571, No.254), known as "The Fourth to Eighth Class 2 County Assessment Law." 3 (iv) The exemption granted pursuant to section 11 of the act 4 of July 7, 1947 (P.L.1414, No.549), known as the "Veterans' 5 Housing Authority Act." 6 (25) Vehicle registration fees imposed pursuant to Title 75 7 of the Pennsylvania Consolidated Statutes (relating to 8 vehicles): 9 (i) The exemptions granted pursuant to section 1302(2), (3), 10 (9), (10), (11), (12), (14) and (16) (relating to vehicles 11 exempt from registration). 12 (ii) The exemption and preferential fees authorized pursuant 13 to section 1901 (relating to exemption of entities and vehicles 14 from fees), each of which shall constitute a tax expenditure. 15 (26) General exemptions: 16 (i) The exemptions granted pursuant to section 15 of the act 17 of March 31, 1949 (P.L.372, No.34), known as "The General State 18 Authority Act of one thousand nine hundred forty-nine." 19 (ii) The exemption granted pursuant to section 6307(b) 20 (relating to exemptions applicable to certificated professional 21 health care service corporations) of Title 40 of the 22 Pennsylvania Consolidated Statutes. 23 (iii) The exemptions granted pursuant to section 23 of the 24 act of May 28, 1937 (P.L.955, No.265), known as the "Housing 25 Authorities Law." 26 (iv) The exemptions granted pursuant to section 15 of the 27 act of May 2, 1945 (P.L.382, No.164), known as the "Municipality 28 Authorities Act of 1945." 29 (v) The exemptions granted pursuant to section 15 of the act 30 of June 5, 1947 (P.L.458, No.208), known as the "Parking 19890H0197B1346 - 13 -
1 Authority Law." 2 (vi) The exemptions granted pursuant to section 17 of the 3 act of April 18, 1949 (P.L.604, No.128), known as the "State 4 Highway and Bridge Authority Act." 5 (vii) The exemptions granted pursuant to section 14 of the 6 act of July 5, 1947 (P.L.1217, No.498), known as the "State 7 Public School Building Authority Act." 8 (27) Statutory exemptions, reductions, deductions, 9 limitations, exclusions, tax deferrals, discounts, refunds, 10 commissions, credits, preferential rates or preferential 11 treatments established after the effective date of this section. 12 (b) At the time required for the submission of the budget to 13 the General Assembly under section 613, the Governor shall also 14 submit to the General Assembly a tax expenditure plan for not 15 less than the prior fiscal year, the current fiscal year, this 16 budget year and the four (4) succeeding fiscal years, which plan 17 shall include the following information: 18 (1) The actual or estimated revenue loss to the Commonwealth 19 caused by each tax expenditure in each fiscal year covered by 20 the plan. 21 (2) The actual or estimated cost of administering and 22 implementing each tax expenditure for each fiscal year covered 23 by the plan. 24 (3) The actual or estimated number and description, in 25 reasonable detail, of taxpayers benefiting from each tax 26 expenditure in each fiscal year covered by the plan. 27 (4) The purpose of each tax expenditure in terms of desired 28 accomplishments. 29 (5) Measures used to determine whether tax expenditures are 30 achieving their purpose and actual or estimated levels of 19890H0197B1346 - 14 -
1 attainment. 2 (6) Which, if any, direct expenditure programs of the 3 Commonwealth are enhanced or complemented by each tax 4 expenditure. 5 (7) An assessment of each tax expenditure based on whether 6 or not each tax expenditure has been successful in meeting the 7 purpose for which it was enacted, and on whether each tax 8 expenditure is the most fiscally effective means of achieving 9 its purpose. 10 (c) Contents of the tax expenditure plan shall be as 11 follows: 12 (1) For the first fiscal year in which a tax expenditure 13 plan is required, the plan need only provide the required 14 information for tax expenditures itemized in subsection (a)(1), 15 (5), (6), (7), (12), (16) and (19). 16 (2) For the second year in which a tax expenditure plan is 17 required, the plan need only provide the required information 18 for the tax expenditures itemized in subsection (a)(1), (3), 19 (4), (5), (6), (7), (8), (12), (16), (17), (19), (20) and (21). 20 (3) For the third year in which a tax expenditure plan is 21 required, the plan need only provide the required information 22 for the tax expenditures itemized in subsection (a)(1), (2), 23 (3), (4), (5), (6), (7), (8), (9), (12), (13), (14), (16), (17), 24 (18), (19), (20), (21) and (25). 25 (4) For the fourth year in which a tax expenditure plan is 26 required, the plan shall provide the required information for 27 all tax expenditures itemized in subsection (a). 28 (d) The Secretary of the Budget may obtain the information 29 required for compliance with this section from all State 30 agencies in like manner as provided for budget information under 19890H0197B1346 - 15 -
1 this article. 2 (e) The Secretary of the Budget is hereby authorized to 3 obtain such data as may be needed for compliance with this 4 section from the appropriate local government officials. 5 (f) The General Assembly recognizes that the exemption from 6 taxation accorded religious institutions is founded on 7 principles of church-state separation, and nothing in this 8 section is intended to express or imply that tax exemption 9 constitutes subsidization of the religious activities of such 10 institutions; nor shall this section be construed to authorize 11 the imposition of any additional requirements on such 12 institutions relating to tax exemption. 13 Section 623. Cost Reduction Team.--(a) The Governor shall 14 form a cost reduction team within the executive branch which 15 shall conduct: 16 (1) A thorough study A REVIEW of the organization and <-- 17 operation of each executive department AGENCIES IN THE EXECUTIVE <-- 18 BRANCH for the purpose of recommending and implementing, through 19 executive action, methods and means of limiting expenditures 20 during each fiscal year. <-- 21 (2) A thorough review of executive branch spending practices 22 in an effort to control the rate of taxation and the cost of 23 State government. 24 (b) No later than the date each year on which the Governor 25 presents his budget to the General Assembly, he shall submit a 26 report to the General Assembly indicating cost reduction 27 measures that can be HAVE BEEN OR WILL BE implemented by the <-- 28 executive branch for the ensuing fiscal year. <-- 29 Section 2. This act shall apply to the budget submitted for 30 the fiscal year next commencing after one year from the 19890H0197B1346 - 16 -
1 effective date of this act and to each fiscal year thereafter. 2 Section 3. This act shall take effect immediately. A13L71JLW/19890H0197B1346 - 17 -