SENATE AMENDED
20050H2082B3117 06805VDL:JSL 10/17/05 #46 10/19/05
PRIOR PRINTER'S NOS. 2872, 2886, 3037 PRINTER'S NO. 3117
No. 2082 Session of 2005
INTRODUCED BY ALLEN, DALLY, SAYLOR, PETRARCA, ZUG, TRUE, FEESE
AND ARGALL, OCTOBER 19, 2005
SENATOR EARLL, FINANCE, IN SENATE, AS AMENDED, NOVEMBER 15, 2005
AN ACT
1 Amending the act of April 9, 1929 (P.L.343, No.176), entitled, <--
2 as amended, "An act relating to the finances of the State
3 government; providing for the settlement, assessment,
4 collection, and lien of taxes, bonus, and all other accounts
5 due the Commonwealth, the collection and recovery of fees and
6 other money or property due or belonging to the Commonwealth,
7 or any agency thereof, including escheated property and the
8 proceeds of its sale, the custody and disbursement or other
9 disposition of funds and securities belonging to or in the
10 possession of the Commonwealth, and the settlement of claims
11 against the Commonwealth, the resettlement of accounts and
12 appeals to the courts, refunds of moneys erroneously paid to
13 the Commonwealth, auditing the accounts of the Commonwealth
14 and all agencies thereof, of all public officers collecting
15 moneys payable to the Commonwealth, or any agency thereof,
16 and all receipts of appropriations from the Commonwealth,
17 authorizing the Commonwealth to issue tax anticipation notes
18 to defray current expenses, implementing the provisions of
19 section 7(a) of Article VIII of the Constitution of
20 Pennsylvania authorizing and restricting the incurring of
21 certain debt and imposing penalties; affecting every
22 department, board, commission, and officer of the State
23 government, every political subdivision of the State, and
24 certain officers of such subdivisions, every person,
25 association, and corporation required to pay, assess, or
26 collect taxes, or to make returns or reports under the laws
27 imposing taxes for State purposes, or to pay license fees or
28 other moneys to the Commonwealth, or any agency thereof,
29 every State depository and every debtor or creditor of the
30 Commonwealth," establishing appropriations limitations; and
1 providing for the disposition of surplus funds.
2 ESTABLISHING SPENDING LIMITATIONS ON THE COMMONWEALTH; PROVIDING <--
3 FOR THE DISPOSITION OF SURPLUS FUNDS; AND MAKING A REPEAL.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. The act of April 9, 1929 (P.L.343, No.176), known <--
7 as The Fiscal Code, is amended by adding an article to read:
8 ARTICLE XV-A
9 APPROPRIATIONS LIMITATIONS
10 Section 1501-A. Limitations on appropriations.
11 (a) General rule.--Except as set forth in subsection (b), in
12 any fiscal year, the General Assembly shall not increase total
13 General Fund State appropriations above the amount of total
14 General Fund State appropriations authorized for the preceding
15 fiscal year by a percentage which exceeds the average percentage
16 increase over the immediately preceding three calendar years in
17 the Consumer Price Index for All Urban Consumers of the Bureau
18 of Labor Statistics unless a referendum stating the amount and
19 duration of the increase is approved by a majority of the
20 electors voting on the referendum.
21 (b) Exception.--Subsection (a) shall not apply to any of the
22 following:
23 (1) An appropriation which, as a result of a requirement
24 of Federal law, is made for a new program or service or for
25 an increase in the level of service for an existing program
26 beyond the existing level of service.
27 (2) An appropriation which, as a result of a requirement
28 of a Federal or State court order which has become final, is
29 made for a new program or service or for an increase in the
30 level of service for an existing program beyond the existing
31 level of service.
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1 (3) An appropriation which:
2 (i) provides for the Commonwealth's share of
3 payments for pension obligations as provided by law; and
4 (ii) is approved by three-fifths of the members
5 elected to each house of the General Assembly.
6 (4) An appropriation which:
7 (i) is for the repayment of interest and principal
8 for all debt incurred by or on behalf of the
9 Commonwealth; and
10 (ii) is approved by three-fifths of the members
11 elected to each house of the General Assembly.
12 (5) An appropriation which:
13 (i) is in response to a Presidential or
14 gubernatorial declaration of an emergency or major
15 disaster in any part of this Commonwealth; and
16 (ii) which is approved by three-fifths of the
17 members elected to each house of the General Assembly.
18 Section 1502-A. Refund of surplus operating funds.
19 Surplus operating funds in the General Fund at the end of the
20 fiscal year which are not required by law to be deposited into
21 the Budget Stabilization Reserve Fund shall be refunded pro rata
22 to the citizens of this Commonwealth based on the liability
23 reported on annual returns filed pursuant to section 330 of the
24 act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code
25 of 1971, within the fiscal year in which the surplus was
26 created. The pro rata refund shall be in the form of a tax
27 credit applied against the tax liability reported on the annual
28 income tax returns filed pursuant to section 330 of the Tax
29 Reform Code of 1971 in the immediately succeeding fiscal year.
30 If the tax credit provided under this section exceeds the
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1 taxpayer's liability, the taxpayer shall receive a refund of the
2 amount in excess of the liability.
3 Section 2. This act shall take effect immediately.
4 SECTION 1. SHORT TITLE. <--
5 THIS ACT SHALL BE KNOWN AND MAY BE CITED AS THE TAXPAYER
6 FAIRNESS ACT.
7 SECTION 2. DEFINITIONS.
8 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL
9 HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
10 CONTEXT CLEARLY INDICATES OTHERWISE:
11 "APPROPRIATION LIMIT." THE TOTAL SPENDING BY THE
12 COMMONWEALTH DURING THE FISCAL YEAR PRIOR TO THE BUDGET YEAR
13 UNDER CONSIDERATION, ADJUSTED BY THE LESSER OF:
14 (1) THE AVERAGE PERCENTAGE CHANGE IN PERSONAL INCOME IN
15 PENNSYLVANIA FOR THE THREE PRECEDING CALENDAR YEARS AS
16 REPORTED BY THE FEDERAL GOVERNMENT OR AS DETERMINED PURSUANT
17 TO AN ACT OF THE GENERAL ASSEMBLY; OR
18 (2) THE AVERAGE PERCENTAGE CHANGE IN INFLATION FOR THE
19 THREE PRECEDING CALENDAR YEARS PLUS THE AVERAGE PERCENTAGE
20 CHANGE IN STATE POPULATION FOR THE THREE PRECEDING YEARS AS
21 REPORTED BY THE ANNUAL FEDERAL CENSUS ESTIMATES, SUCH NUMBER
22 BEING ADJUSTED EVERY DECADE TO MATCH THE OFFICIAL FEDERAL
23 CENSUS.
24 FOR THE PURPOSES OF PARAGRAPHS (1) AND (2), ALL ADJUSTMENT
25 CALCULATIONS SHALL UTILIZE ACTUAL DATA.
26 "INFLATION." THE PERCENTAGE CHANGE IN THE UNITED STATES
27 DEPARTMENT OF LABOR, BUREAU OF LABOR STATISTICS, CONSUMER PRICE
28 INDEX FOR ALL URBAN CONSUMERS, NOT SEASONALLY ADJUSTED: ALL
29 ITEMS INDEX, OR ITS SUCCESSOR INDEX.
30 "TOTAL SPENDING BY THE COMMONWEALTH." ALL GENERAL FUND
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1 APPROPRIATIONS MADE BY THE GENERAL ASSEMBLY.
2 SECTION 3. SPENDING LIMITATIONS.
3 (A) GENERAL RULE.--TOTAL SPENDING BY THE COMMONWEALTH IN ANY
4 FISCAL YEAR SHALL NOT EXCEED THE APPROPRIATION LIMIT AS SET
5 FORTH IN THIS ACT.
6 (B) EXCEPTIONS.--THE APPROPRIATION LIMIT OF THE COMMONWEALTH
7 MAY BE EXCEEDED IN ANY FISCAL YEAR FOR THE FOLLOWING:
8 (1) TO RESPOND TO A PRESIDENTIALLY DECLARED EMERGENCY IF
9 THE GENERAL ASSEMBLY APPROVES BY AN AFFIRMATIVE VOTE OF A
10 MAJORITY OF THE MEMBERS ELECTED TO EACH HOUSE OF THE GENERAL
11 ASSEMBLY.
12 (2) TO RESPOND TO A GUBERNATORIALLY DECLARED EMERGENCY
13 IF THE GOVERNOR SO REQUESTS AND THE GENERAL ASSEMBLY APPROVES
14 BY AN AFFIRMATIVE VOTE OF THREE-FIFTHS OF THE MEMBERS ELECTED
15 TO EACH HOUSE OF THE GENERAL ASSEMBLY.
16 (3) IN OTHER SITUATIONS IF THE GOVERNOR SO REQUESTS AND
17 THE GENERAL ASSEMBLY APPROVES BY AN AFFIRMATIVE VOTE OF TWO-
18 THIRDS OF THE MEMBERS ELECTED TO EACH HOUSE OF THE GENERAL
19 ASSEMBLY.
20 IN NO CASE SHALL THE EXCESS SPENDING AUTHORIZED BY EXCEEDING THE
21 APPROPRIATION LIMIT IN THIS MANNER BE INCLUDED IN THE
22 COMPUTATION BASE OF THE APPROPRIATION LIMIT FOR ANY SUBSEQUENT
23 FISCAL YEAR.
24 SECTION 4. DISPOSITION OF SURPLUS REVENUES.
25 (A) TRANSFER OF SURPLUS.--
26 (1) EXCEPT AS PROVIDED UNDER PARAGRAPH (2), FOR ANY
27 FISCAL YEAR IN WHICH THE GOVERNOR CERTIFIES THAT A SURPLUS
28 EXISTS IN THE GENERAL FUND, 50% OF THAT SURPLUS SHALL BE
29 DEPOSITED BY THE END OF THE NEXT SUCCEEDING QUARTER INTO THE
30 BUDGET STABILIZATION RESERVE FUND ESTABLISHED IN SECTION
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1 1701-A OF THE ACT OF APRIL 9, 1929 (P.L.343, NO.176), KNOWN
2 AS THE FISCAL CODE, AND 50% OF THAT SURPLUS SHALL BE
3 DEPOSITED BY THE END OF THE NEXT SUCCEEDING QUARTER INTO THE
4 TAXPAYER FAIRNESS FUND, WHICH FUND IS HEREBY ESTABLISHED IN
5 THE STATE TREASURY.
6 (2) FOR ANY FISCAL YEAR IN WHICH THE STATE TREASURER
7 CERTIFIES THAT THE BALANCE IN THE BUDGET STABILIZATION
8 RESERVE FUND EQUALS OR EXCEEDS 10% OF THE TOTAL OF ALL
9 GENERAL FUND APPROPRIATIONS, 100% OF THE SURPLUS CERTIFIED BY
10 THE GOVERNOR UNDER PARAGRAPH (1) SHALL BE DEPOSITED INTO THE
11 TAXPAYER FAIRNESS FUND.
12 (B) DISTRIBUTION.--THE MONEYS IN THE TAXPAYER FAIRNESS FUND
13 SHALL BE DISTRIBUTED TO TAXPAYERS WHO HAVE LIABILITY FOR THE TAX
14 IMPOSED UNDER ARTICLE III OF THE ACT OF MARCH 4, 1971 (P.L.6,
15 NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, THROUGH A TEMPORARY
16 REDUCTION IN THE RATE OF SUCH TAX, WHICH REDUCTION SHALL BE
17 ESTABLISHED BY AN ACT OF THE GENERAL ASSEMBLY TO BE EFFECTIVE
18 FOR JANUARY 1 THROUGH DECEMBER 31 OF THE UPCOMING CALENDAR YEAR.
19 (C) APPROPRIATED FUNDS.--THE GENERAL ASSEMBLY MAY AT ANY
20 TIME PROVIDE ADDITIONAL AMOUNTS FROM ANY FUNDS AVAILABLE TO THE
21 COMMONWEALTH AS AN APPROPRIATION TO THE BUDGET STABILIZATION
22 RESERVE FUND.
23 SECTION 5. REPEAL.
24 SECTION 1702-A OF THE ACT OF APRIL 9, 1929 (P.L.343, NO.176),
25 KNOWN AS THE FISCAL CODE, IS REPEALED.
26 SECTION 6. EFFECTIVE DATE.
27 THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
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