Req. No. 1277 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 6 By: Montgomery
AS INTRODUCED
A Joint Resolution directing the Secretary of State
to refer to the people for their approval or
rejection a proposed amendm ent to Section 23 of
Article X of the Oklahoma Constitution; modifying
limitation on expenditure of certain amounts from
Constitutional Reserve Fund; increasing Fund
threshold balance required for certai n expenditure;
increasing amount which may be spent from Fund;
adding specified purpose for expenditure; eliminating
required prioritization of specified recommendations;
limiting applicability of certain restricti ons to
specified establishment types; conf orming language;
providing ballot title; and directin g filing.
BE IT RESOLVED BY THE SENATE AND THE HOUSE OF REPRESENTATIVES OF THE
1ST SESSION OF THE 58TH OKLAHOMA LEGISLATURE:
SECTION 1. The Secretary of State shall refer to the people for
their approval or rejection, as and i n the manner provided by law,
the following proposed amendment to Section 23 of Article 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 def icit,
against the state, or any departm ent, institution or agency thereof,
Req. No. 1277 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
regardless of its form or the sou rce of money from which it is to be
paid, except as may be provided in this section and in Sect ions 24
and 25 of Article X of the Constitution of th e State of Oklahoma.
To ensure a balanced annual budget, pursuant to the limitations
contained in the forego ing, procedures are herewith established as
follows:
1. Not more than forty -five (45) days or less than thirty-five
(35) days prior to the convenin g 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 b y the Legislature, and shall further ce rtify
amounts available for appropriation which shall be based on a
determination, in accordance with the procedure hereinafter
provided, of the revenues to be rece ived by the state under the laws
in effect at the tim e 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 Boa rd of Equalization, which
shall include all sources of revenue to each fund for the next
ensuing fiscal year; provided, however, appropriated federa l funds
Req. No. 1277 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
shall be certified for the full amount of the estimate. Said
estimate shall consider any increase o r 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 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 li mit
shall be adjusted for funds not pre viously appropriated. The limit
on the growth of appropriations shal l be certified to by the State
Board of Equalization.
2. Such certification shall be filed wit h the Governor, the
President and President Pro Tempo re 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 certificat ion is made and filed, unless the
State Board of Equalization has failed to file said certif ication 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 any regular sess ion or special
session, called for that purpose, enact laws to provide for
additional revenues or a reduction in revenues, other than ad
Req. No. 1277 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
valorem taxes, or transferring the existing revenu es or
unappropriated cash on hand from one fund to another, or making
provisions for appropriating funds not previously appropriated
directly by the Legislature. W hereupon, 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 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 Tempore of the Senate, and th e 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 th e certification, based upon the most
current information available, and determine the amount of funds
available for appropriation for that legislative session. At said
meeting the Board shall determine the limit on the growth of
appropriations as provided for in this section.
Req. No. 1277 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
4. Surplus funds or monies sha ll 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 Treasurer until such time
that the amount of said Fund equals fifteen percent (15%) of the
General Revenue Fund certification for the preceding fiscal year.
Appropriations made from said Fund shall be c onsidered special
appropriations.
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 forthcoming
fiscal year General Revenue Fund is less than that of
the current fiscal year certification. 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 subparagraph a of
this paragraph are not applicable 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
Req. No. 1277 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
($80,000,000.00) One Hundred Million Doll ars
($100,000,000.00), up to Ten Million Dollars
($10,000,000.00) Twenty Million Dollars
($20,000,000.00) may be expended for the purpose
of providing incentives to support retention of
at-risk manufacturing establishments and small
businesses affected by a catastrophic health
emergency declared by the Governor pursuant to
executive order in this state in order to retain
employment for residents of this state. Such
incentives shall be paid by the Oklahom a Tax
Commission upon 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 provided
herein pursuant to criteria s et out by law,
(b) the incentive will r esult in a substantial
benefit to this state, and
(c) payment of the incentive would be in
accordance with the provisions of this
Req. No. 1277 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
subparagraph and laws enacted to i mplement
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 committ ee shall make
recommendations to the Governor, the Sp eaker of
the House of Representatives a nd the President
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 because
the plant is no longer compe titive 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 awarded to an
at-risk manufacturing establishment shall not
exceed ten percent (10%) of the amount invested
by an establishment in capital ass ets to be
utilized in this state. Incentives may only be
Req. No. 1277 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
paid pursuant to an investment contract between
the establishment and a state agency designa ted
by law, which provides for a specif ied 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 payment
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
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
One Hundred Million Dollars ( $100,000,000.00).
Investment contracts authorized by this
subparagraph shall provide that if any incentive
payment is payable during a fiscal year in which
either the balance at the beginning of the fiscal
year in the Constituti onal Reserve Fund is not
equal to or greater than Eighty Million Dollars
Req. No. 1277 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
($80,000,000.00) or when the certification by the
State Board of Equalization for such fiscal year
General Revenue Fund is less than that of the
immediately prior fiscal year certific ation One
Hundred Million Dollars ($ 100,000,000.00), 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
the amounts available for payment under this
subparagraph in a fiscal year, then no new
contracts may be authoriz ed 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 authorized to 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
Req. No. 1277 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
appropriated for the current fiscal year if the State Board of
Equalization determines that a reve nue failure has occurred with
respect to the General Reven ue Fund of the State Treasury. In no
event shall the amount of monies appropriated from the
Constitutional Reserve Fund pursuant to this paragraph be in excess
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 entire fiscal year. Monies
appropriated to any state governmental entity from the
Constitutional Reserve Fund pursuant to this paragrap h may only be
made in order to ensure that the monies actu ally received by the
entity for the then current fiscal year are equal to or less than,
but not in excess of, the total appropriation amount for such entity
in effect at the beginning of the then cu rrent fiscal year.
8. Up to one-quarter (1/4) of the bala nce at the beginning of
the current fiscal year in the Constitutional Reserve Fund may be
appropriated, upon a declaration by the Governor that emergency
conditions exist, with concurrence of the Le gislature by a two-
thirds (2/3) vote of the House of Repre sentatives 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 Senate.
Req. No. 1277 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
9. That portion of every appropriation, at the 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 Treasur y to the credit of the General Revenue
Fund or of any special fund (which 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 m onthly 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, 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
derived from any law or laws which al locate 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 institu tion of
higher education within The Oklahoma State System of Higher
Education from contracting with a president of such institution of
higher education for per iods extending more than one (1) year, but
not to exceed three (3) years beyond the fiscal year i n which the
contract is signed.
Req. No. 1277 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
10. The Legislature shall provide a method whereby
appropriations shall be divided and set up on a monthly, quarterly
or semiannual basis within each fiscal year to prevent obligations
being incurred in excess of the revenu e to be collected, and
notwithstanding other provisions of this Constitution, 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, i nstitution, board,
commission or special appropriation made by the State Legislature in
the ratio that its total appropriation for that fiscal year bears to
the total of all appropriations from that fund for that fisc al year;
provided, however, that the Go vernor shall have discretion to issue
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 l imit 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 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.
Req. No. 1277 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
SECTION 2. 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 No. ____ State Question No. ____
THE GIST OF THE PROPOSITION IS AS FOLLOWS:
This measure amends Section 23 of Article 10 of the Oklahoma
Constitution. It removes a limit on one condition for
expenditures from the Constitutional Reserve Fund. It increases
the balance in the Fund required to provide certain assistance
and the amount which may be spent. It allows the Fund to be
used to help small businesses affected by a catastrophic health
emergency. The Legislature could define situations which apply
for this purpose. It modifies the basis for certain
recommendations for spending funds. It makes certain
restrictions for spending fund s apply to specific types of
businesses.
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 Ball ot Title set forth in SECTION 2
Req. No. 1277 Page 14 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
hereof, with the Secr etary of State and one copy with the Attorney
General.
58-1-1277 QD 1/4/2021 3:03:57 PM