Legislative procedure; requiring three-fourths vote for certain revenue modifying legislation. Effective date.
Impact
Furthermore, the bill establishes strict voting requirements for such tax-related legislation. To pass a bill that reduces revenue, a threshold of three-fourths approval from both the Senate and the House of Representatives is required. This amendment reflects an effort to reinforce constitutional requirements and emphasizes the gravity of making changes that could affect state finances. The intention is to invoke greater caution in legislative procedures related to fiscal policy and tax alterations.
Summary
Senate Bill 395 mandates that any bill, resolution, or amendment proposed by the Oklahoma Legislature that aims to reduce state revenue through tax cuts must be accompanied by a documented fiscal impact analysis. This requirement is intended to inform legislators and mitigate the risks associated with reductions in state revenue, ensuring that lawmakers are fully aware of the financial implications of such decisions before proceeding with debates or votes on the bills. The bill places the responsibility on the Oklahoma Tax Commission to provide this analysis within a specified timeline.
Contention
Potential points of contention surrounding SB395 may arise from varying perspectives among legislators on the implications of requiring a fiscal impact statement. Proponents may argue that this added layer of scrutiny is necessary to protect the state's budget and prevent reckless financial legislation. Opponents, however, might view it as an obstacle to necessary tax reforms or new proposals that could foster economic growth, suggesting that the requirement could slow down the legislative process or discourage innovative tax policy initiatives.