Req. No. 451 Page 1 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
SENATE JOINT
RESOLUTION 14 By: Newhouse
AS INTRODUCED
A Joint Resolution directing the Secretary of State
to refer to the peopl e for their approval or
rejection a proposed amendment to Section 23 of
Article X of the Oklahoma Constitution; increasing
maximum amount deposited into Constitutional Reserve
Fund; providing ballot title; and directing filing .
BE IT RESOLVED BY THE SENATE AND THE HOUSE OF REPRESENTATIVE S OF THE
1ST SESSION OF THE 5 8TH OKLAHOMA LEGISLATURE:
SECTION 1. The Secretary of State shall refer to the people for
their approval or rejection, as and in the manner provided by law,
the following proposed amendment to Section 23 of Art icle X of the
Oklahoma Constitution to read as follows:
Section 23. The state shall never create or authorize the
creation of any debt or obligation, or fund or pay any deficit,
against the state, or any departm ent, institution or agency thereof,
regardless of its form or the source of money from which it is to be
paid, except as may be provided in this section and in Sections 24
and 25 of Article X of the Constitution of the State of Oklahoma.
Req. No. 451 Page 2 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
To ensure a balanced annual budget, pursuant to the limitation s
contained in the foregoing, procedures are herewith established as
follows:
1. Not more than forty -five (45) days or less than thirty -five
(35) days prior to the convening of each regular session of the
Legislature, the State Board of Equalization shall certify the total
amount of revenue which accrued during the last preceding fiscal
year to the General Revenue Fund and to each Special Revenue Fund
appropriated directly by the Legislature, and shall further ce rtify
amounts available for appropriation wh ich shall be based on a
determination, in accordance with the procedure hereinafter
provided, of the revenues to be received by the state under the laws
in effect at the time such determination is made, for the n ext
ensuing fiscal year, showing separately the revenues to accrue to
the credit of each such fund of the state appropriated directly by
the Legislature.
Amounts certified as available for appropriation from each fund,
as hereinbefore provided, shall be ni nety-five percent (95%) of an
itemized estimate made by the State Board of Equalization, which
shall include all sources of revenue to each fund for the next
ensuing fiscal year; provided, however, appropriated federal funds
shall be certified for the full amount of the estimate. Said
estimate shall consider any increase or decline in revenues that
would result from predictable changes in the economy.
Req. No. 451 Page 3 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Legislative appropriations for any fiscal year, except for
special appropriations provided for in paragrap h 6, 7 or 8 shall be
limited to a sum not to exceed the total amount appropriated from
all funds in the preceding fiscal year, plus twelve percent (12%),
adjusted for inflation for the previous calendar year. Said limit
shall be adjusted for funds not pre viously appropriated. The limit
on the growth of appropriations shall be certified to by the State
Board of Equalization.
2. Such certification shall be filed with the Governor, the
President and President Pro Tempore of the Senate, and the Speaker
of the House of Representatives. The Legislature shall not pass or
enact any bill, act or measure making an appropriation of money for
any purpose until such certification is made and filed, unless the
State Board of Equalization has failed to file said certif ication at
the time of convening of said Leg islature. In such event, it shall
be the duty of the Legislature to make such certification pursuant
to the provisions of this section. All appropriations made in
excess of such certification shall be null and void; provided,
however, that the Legislatur e may at any regular session or special
session, called for that purpose, enact laws to provide for
additional revenues or a reduction in revenues, other than ad
valorem taxes, or transferring the existing revenu es or
unappropriated cash on hand from one f und to another, or making
provisions for appropriating funds not previously appropriated
Req. No. 451 Page 4 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
directly by the Legislature. Whereupon, it shall be the duty of the
State Board of Equalization to make a determination of the revenues
that will accrue under such la ws and ninety-five percent (95%) of
the amount of any increase or decrease resulting, for any reason,
from such changes in laws shall be added to or deducted from the
amount previously certified available for app ropriation from each
respective fund, as the case may be. The State Board of
Equalization shall file the amount of such adjusted certification,
or additional certification for funds not previously appropriated
directly by the Legislature, with the Governo r, with the President
and President Pro Temp ore of the Senate, and the Speaker of the
House of Representatives, and such adjusted amount shall be the
maximum amount which can be appropriated for all purposes from any
such fund for the fiscal year being cer tified.
3. The State Board of Equalization shall meet within five (5)
days after the monthly apportionment in February of each year, and
at that time may adjust the certification, based upon the most
current information available, and determine the amount of funds
available for appropriation for th at legislative session. At said
meeting the Board shall determine the limit on the growth of
appropriations as provided for in this section.
4. Surplus funds or monies shall be any amount accruing to the
General Revenue Fund of the State of Oklahoma over and above the
itemized estimate made by the State Board of Equalization.
Req. No. 451 Page 5 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
5. All such surplus funds or monies shall be placed in a
Constitutional Reserve Fund by the State Treasurer until such time
that the amount of said Fund equals fifteen percent (15%) thirty
percent (30%) of the General Revenue Fund certification for the
preceding fiscal year. Appropriations made from said Fund shall be
considered special appropriations.
6. a. Up to three-eighths (3/8) of the balance at the
beginning of the current fi scal year in the
Constitutional Reserve Fund may be appropriated for
the forthcoming fiscal year, when the certification by
the State Board of Equalization for said forthcoming
fiscal year General Revenue Fund is less than that of
the current fiscal year c ertification. In no event
shall the amount of monies appropriated from the
Constitutional Reserve Fund be in excess of the
difference between the two said certifications.
b. (1) In years when the provisions of s ubparagraph a of
this paragraph are not appl icable and the balance
at the beginning of the current fiscal year in
the Constitutional Reserve Fund is equal to or
greater than Eighty Million Dollars
($80,000,000.00), up to Ten Million Dollars
($10,000,000.00) may be expended for the purpose
of providing incentives to support retention of
Req. No. 451 Page 6 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
at-risk manufacturing establishments in this
state in order to retain employment for residents
of this state. Such incentives shall be paid by
the Oklahoma Tax Commission up on a unanimous
finding by the Governor, the Speaker of the House
of Representatives and the President Pro Tempore
of the Senate that:
(a) such incentives have been recommended by an
independent committee created by the
Legislature for such purposes as prov ided
herein pursuant to criteria set out by law,
(b) the incentive will result in a substantial
benefit to this state, and
(c) payment of the incentive would be in
accordance with the provisions of this
subparagraph and laws enacted to implement
provisions of this subparagraph.
(2) The independent committee will be composed of not
less than seven (7) people appointed or otherwise
determined pursuant to laws enacted by the
Legislature providing for membership on the
committee. The committee shall make
recommendations to the Governor, the Speaker of
the House of Representatives and the President
Req. No. 451 Page 7 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Pro Tempore of the Senate for the awarding of
incentives. Such recommendations shall give
priority to establishments which:
(a) are at greater risk of losing jobs be cause
the plant is no longer competitive or
leaving the state and thereby causing the
loss of more employment in this state than
other eligible recipients, and
(b) provide the largest economic impact to the
state.
(3) For any fiscal year, the incentives sh all not
exceed ten percent (10%) of the amou nt invested
by an establishment in capital assets to be
utilized in this state. Incentives may only be
paid pursuant to an investment contract between
the establishment and a state agency designated
by law, which provides for a specified amount of
investment in a capital asset to be made by the
establishment over a period of not to exceed five
(5) years. No incentive payment shall be made
prior to the actual investment by the
establishment. The contract shall m ake payment
of any incentives in any fiscal year contingent
on the balance at the beginning of such fiscal
Req. No. 451 Page 8 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
year in the Constitutional Reserve Fund being
equal to or greater than Eighty Million Dollars
($80,000,000.00) and on the certification by the
State Board of Equalization for such fiscal year
of the amount available for appropriation from
the General Revenue Fund being greater than the
amount certified for the preceding fiscal year.
Investment contracts authorized by this
subparagraph shall provide th at if any incentive
payment is payable durin g a fiscal year in which
either the balance at the beginning of the fiscal
year in the Constitutional Reserve Fund is not
equal to or greater than Eighty Million Dollars
($80,000,000.00) or when the certification by the
State Board of Equalization for such fiscal year
General Revenue Fund is less than that of the
immediately prior fiscal year certification, then
any incentive payments which would have been
payable during such fiscal year shall be payable
in the first fiscal year when funds are available
pursuant to the provisions of division (1) of
this subparagraph. In the event that the amount
of incentives payable under investment contracts
authorized by this subparagraph is greater than
Req. No. 451 Page 9 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
the amounts available f or payment under this
subparagraph in a fisc al year, then no new
contracts may be authorized during such year and
incentive payments which are made shall be
reduced pro rata as necessary to apply all
available funds to incentive payments which are
payable in such year.
(4) The Legislature is authori zed to enact laws
necessary to implement the provisions of this
section.
7. Up to three-eighths (3/8) of the balance at the beginning of
the current fiscal year in the Constitutional Reserve Fund may be
appropriated for the current fiscal year if the Stat e Board of
Equalization determines that a revenue failure has occurred with
respect to the General Revenue Fund of the State Treasury. In no
event shall the amount of monies appropriated from the
Constitutional Reserve Fund pursuant to this paragraph be i n excess
of the amount of the projected revenue failure in the General
Revenue Fund, which total amount shall be computed by the State
Board of Equalization, for the entire fiscal year. Monies
appropriated to any state governmental entity from the
Constitutional Reserve Fund pursuant to this paragraph may only be
made in order to ensure that the monies actually received by the
entity for the then current fiscal year are equal to or less than,
Req. No. 451 Page 10 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
but not in excess of , the total appropriation amount for such en tity
in effect at the beginning of the then current fiscal year.
8. Up to one-quarter (1/4) of the balance at the beginning of
the current fiscal year in the Constitutional Reserve Fund may be
appropriated, upon a declaration by the Governor that emergenc y
conditions exist, with concurrence of the Legislature by a two -
thirds (2/3) vote of the House of Representatives and Senate for the
appropriation; or said one -quarter (1/4) could be appropriated upon
a joint declaration of emergency conditions by the Spe aker of the
House of Representatives and the President Pro Tempore of the
Senate, with a concurrence of a three -fourths (3/4) vote of the
House of Representatives and Senate.
9. That portion of every appropriati on, at the end of each
fiscal year, in exces s of actual revenues collected and allocated
thereto, as hereinafter provided, shall be null and void. Revenues
deposited in the State Treasury to the credit of the General Revenue
Fund or of any special fund (w hich derives its revenue in whole or
in part from state taxes or fees) shall, except as to principal and
interest on the public debt, be allocated monthly to each
department, institution, board, commission or special appropriation
on a percentage basis, in that ratio that the total appropriation
for such department, institution, board, commission or special
appropriation from each fund for that fiscal year bears to the total
of all appropriations from each fund for that fiscal year, and no
Req. No. 451 Page 11 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
warrant shall be issued in excess of said allocation. Any
department, institution or agency of the state operating on revenues
derived from any law or laws which allocate the revenues thereof to
such department, institution or agency shall not incur obligations
in excess of the unencumbered balance of cash on hand. Nothing in
this section shall prevent, under such conditions and limitations as
shall be prescribed by law, the governing board of an institution of
higher education within The Oklahoma State System of Higher
Education from contracting with a president o f such institution of
higher education for periods extending more than one (1) year, but
not to exceed three (3) years beyond the fiscal year in which the
contract is signed.
10. The Legislature shall provide a method whereby
appropriations shall be divid ed and set up on a monthly, quarterly
or semiannual basis within each fiscal year to prevent obligations
being incurred in excess of the revenue to be collected, and
notwithstanding other provisions of this Const itution, the
Legislature shall provide that all appropriations shall be reduced
to bring them within revenues actually collected, but all such
reductions shall apply to each department, institution, board,
commission or special appropriation made by the St ate Legislature in
the ratio that its total appropriation for that fiscal year bears to
the total of all appropriations from that fund for that fiscal year;
provided, however, that the Governor shall have discretion to issue
Req. No. 451 Page 12 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
deficiency certificates to the State Treasurer for the benefit of
any department, institution or agency of the state, if the amount of
such deficiency certificates be within the limit of the current
appropriation for that department, institution or agency, whereupon
the State Treasurer shall issue warrants to the extent of such
certificates for the payment of such claims as may be authorized by
the Governor, and such warrants shall become a part of the public
debt and shall be paid out of any money appropriated by the
Legislature and made lawfully available therefor; provided furt her,
that in no event shall said deficiency certificates exceed in the
aggregate the sum of Five Hundred Thousand Dollars ($500,000.00) in
any fiscal year.
SECTION 2. The Ballot Title for the pro posed Constitutional
amendment as set forth in SECTION 1 of this resolution shall be in
the following form:
BALLOT TITLE
Legislative Referendum No. ____ State Question No. ____
THE GIST OF THE PROPOSITION IS AS FOLLOWS:
This measure amends Section 23 of Ar ticle 10 of the Oklahoma
Constitution. It amends the maximum amount which may be
deposited into a certain fund. The fund is known as the
Constitutional Reserve Fund. Under current law, the cap is set
at fifteen percent (15%) of the amount certified for the General
Req. No. 451 Page 13 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Revenue Fund for the prior fiscal year. This would increase the
cap amount to thirty percent (30%).
SHALL THE PROPOSAL BE APPROVED?
FOR THE PROPOSAL — YES _____________
AGAINST THE PROPOSAL — NO _____________
SECTION 3. The President Pro Tempore of the Senate shall,
immediately after the passage of this resolution, prepare and file
one copy thereof, including the Ballot Title set forth in SECTION 2
hereof, with the Secretary of State and one copy with the Attorney
General.
58-1-451 QD 1/21/2021 9:09:38 AM