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ENGROSSED SENATE
JOINT
RESOLUTION NO. 34 By: Jech of the Senate
and
Newton of the House
[ proposed amendment - maximum amount deposited into
Constitutional Reserve Fund - ballot title - filing ]
BE IT RESOLVED BY THE SENATE A ND THE HOUSE OF REPRESENTATIVES OF THE
2ND SESSION OF THE 58TH 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 Article X of the
Oklahoma Constitution to read as follo ws:
Section 23. The state shall never create or authorize the
creation of any debt or obligation, or fund or pay any defi cit,
against the state, or any department, instituti on 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.
To ensure a balanced annual budg et, pursuant to the limitations
contained in the foregoing, procedures are herewi th established as
follows:
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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 Sta te Board of Equalization shall certify t he 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 certify
amounts available for appropriation which shall be based on a
determination, in accordanc e 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 next
ensuing fiscal year, showing separately the revenu es to accrue to
the credit of each such f und of the state appropriated directly by
the Legislature.
Amounts certified as available for appropriation from each fund,
as hereinbefore provided, shall be ninety -five percent (95%) of an
itemized estimate made b y 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.
Legislative appropriations for any fiscal year, except for
special appropriations provided for in paragraph 6, 7 or 8 sh all be
limited to a sum not to exceed th e total amount appropriated from
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all funds in the preceding fiscal year, plus twelve percent (12%),
adjusted for inflation for the previous calendar year. Said lim it
shall be adjusted for funds not previously approp riated. The limit
on the growth of appr opriations shall be certified to by the S tate
Board of Equalization.
2. Such certification shall be filed with the Governor, the
President and President Pro Tempor e of the Senate, and the Speaker
of the House of Representatives. The Legislature shall not pass or
enact any bill, act or measure m aking an appropriation of money for
any purpose until such certification is made and filed, unless the
State Board of Equal ization has failed to file said certification at
the time of convening of said Legislature. 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 Legislature may at a ny 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 revenues or
unappropriated cash on hand from one fund to ano ther, or making
provisions for appropriat ing funds not previously appropriated
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 laws and nin ety-five percent (95%) of
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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 appropriation fro m 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 Governor, with the Pr esident
and President Pro Tempore 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 certified.
3. The State Board of Equalization shall meet within five (5)
days after the monthly a pportionment 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 that legisla tive 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 shal l 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.
5. All such surplus funds or monies shall be placed in a
Constitutional Reserve Fund by the State T reasurer until such time
that the amount of said Fun d equals fifteen percent (15%) twenty-
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five percent (25%) of the General Revenue F und certification for the
preceding fiscal year. Appropriations made from said Fund shall be
considered special appropriat ions.
6. a. Up to three-eighths (3/8) of the balance at the
beginning of the current fiscal year in the
Constitutional Reserve Fund m ay be appropriated for
the forthcoming fiscal year, when the certification by
the State Board of Equalization for said fort hcoming
fiscal year General Revenue Fund is less tha n that of
the current fiscal year certif ication. In no event
shall the amount of monies appropriated from the
Constitutional Reserve Fund be in excess of the
difference between the two said certification s.
b. (1) In years when the provisions of subparagra ph a of
this paragraph are not applicabl e 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
at-risk manufacturing establishments in this
state in order to retain employment for residents
of this state. Such incentives shal l be paid by
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the Oklahoma Tax Commission upon a unan imous
finding by the Governor, the Speak er of the House
of Representatives and th e President Pro Tempore
of the Senate that:
(a) such incentives have been recommended by an
independent committee created b y the
Legislature for such purposes as provided
herein pursuant to criteria set out by law,
(b) the incentive will result in a substa ntial
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 commit tee 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
Pro Tempore of the Senate for the awarding of
incentives. Such recommendations shall give
priority to establishments which :
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(a) are at greater risk of losing jobs because
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 shall not
exceed ten percent (10%) of the amount in vested
by an establishment in capital ass ets 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 provide s 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 make payme nt
of any incentives in any fiscal year contingent
on the balance at the beginnin g of such fiscal
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
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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 autho rized by this
subparagraph shall provide that if any incentive
payment is payable during a f iscal 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 fisc al 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 subparagr aph is greater than
the amounts available for paymen t under this
subparagraph in a fiscal ye ar, then no new
contracts may be authoriz ed during such year and
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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 authorized t o enact laws
necessary to implement the p rovisions 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 State Boa rd of
Equalization determines that a reve nue failure has occurred with
respect to the General Revenue Fund of the State Treasury. In no
event shall the amount of m onies appropriated from the
Constitutional Reserve F und pursuant to this paragraph be in exc ess
of the amount of the projected revenu e failure in the General
Revenue Fund, which total amount shall be computed by the State
Board of Equalization, for the ent ire fiscal year. Monies
appropriated to any state g overnmental entity from the
Constitutional Reserve Fund pursuant to this paragrap h 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,
but not in excess of, the tot al appropriation amount for such entity
in effect at the beginning of the then cu rrent fiscal year.
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8. Up to one-quarter (1/4) of the balance at the beginning of
the current fiscal year in the Constituti onal Reserve Fund may be
appropriated, upon a declar ation by the Governor that emergency
conditions exist, with concurrence of the Le gislature 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 Speaker of the
House of Representatives and the P resident Pro Tempore of the
Senate, with a concurrence of a three -fourths (3/4) vote of the
House of Representatives and Se nate.
9. That portion of every appropriation, at th e end of each
fiscal year, in excess 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 Gen eral Revenue
Fund or of any special fund (which deri ves 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 spec ial appropriation
on a percentage basis, in that rat io that the total appropriation
for such department, institution, board, commissi on 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
warrant shall be issued in excess of said allocation. Any
department, institution or agency of the state o perating on revenues
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derived from any law or laws which allocate the revenues thereof to
such department, institution or ag ency shall not incur obligations
in excess of the unencumbered balance of cash on hand. Not hing 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 of suc h institution of
higher education for per iods 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 wh ereby
appropriations shall be divided an d 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 Constitution, the
Legislature shall provide that all a ppropriations 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 State Legis lature in
the ratio that its total appro priation 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
deficiency certificates to the State Tre asurer for the benefit of
any department, institution or agency of the state, if the amount of
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such deficiency certificates be within the limit of the current
appropriation for that department, institutio n or agency, whereupon
the State Treasurer shall iss ue 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 mo ney appropriated by the
Legislature and made lawfull y available therefor; provided further,
that in no event shall said deficiency ce rtificates exceed in the
aggregate the sum of Five Hundred Thousand Dollars ($500,000.00) in
any fiscal year.
SECTION 2. The provisions of Section 1 of t his resolution shall
not become effective if Enrolled Senate Joint Resolution 35 of the
2nd Session of the 58th Legislature is not app roved by the people of
this state.
SECTION 3. The Ballot Title for the proposed Constitutional
amendment as set forth in SECTION 1 of this resolution shall be in
the following form:
BALLOT TITLE
Legislative Referendum N o. ____ State Question No. ____
THE GIST OF THE PROPOSITION IS AS FOLLOWS:
This measure amends Section 23 of Article 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
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at fifteen percent (15%) of the amoun t certified for the General
Revenue Fund for the prior fiscal year. This would increase the
cap amount to twenty-five (25%). This measure only becomes
effective if voters app rove the measure that creates the
Taxpayer Allocation Program Fund to provide an income tax credit
for individual taxpayers contained in Senate Joint Resolution
35.
SHALL THE PROPOSAL BE APPROVED?
FOR THE PROPOSAL — YES _____________
AGAINST THE PROPOSAL — NO _____________
SECTION 4. 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 se t forth in SECTION 3
hereof, with the Secretary of State and one copy with the Attorney
General.
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Passed the Senate the 21st day of March, 2022.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2022.
Presiding Officer of the House
of Representatives