OK
Oklahoma House Bill HJR1021

Oklahoma 2023 Regular Session

Oklahoma House Bill HJR1021 Compare Versions

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2828 STATE OF OKLAHOMA
2929
3030 1st Session of the 59th Legislature (2023)
3131
3232 HOUSE JOINT
3333 RESOLUTION 1021 By: Fugate
3434
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3838 AS INTRODUCED
3939
4040 A Joint Resolution directing the Secretary of State
4141 to refer to the people for their approval or
4242 rejection a proposed amendmen t to Section 23 of
4343 Article X of the Constitution of the State of
4444 Oklahoma; modifying provisions related to maximum
4545 balance of the Constitutional Reserve Fund; providing
4646 for sources of revenue to be included or excluded
4747 from computation; providing ballot ti tle; and
4848 directing filing.
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5454 BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES AND THE SENATE OF THE
5555 1ST SESSION OF THE 5 9TH OKLAHOMA LEGISLATURE:
5656 SECTION 1. The Secretary of State shall refer to the people for
5757 their approval or rej ection, as and in the manner p rovided by law,
5858 the following proposed amendment to Section 23 of Article X of the
5959 Constitution of the State of Oklahoma to read as follows:
6060 Section 23. The state shall never create or authorize the
6161 creation of any debt or o bligation, or fund or pay any deficit,
6262 against the state, or any department, institution or agency thereof,
6363 regardless of its form or the source of money from which it is to be
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9090 paid, except as may be provided in this section and in Sections 24
9191 and 25 of Article X of the Constitution of the State of Oklahoma.
9292 To ensure a balanced annual budget, pursuant to the limitations
9393 contained in the foregoing, procedures are herewith established as
9494 follows:
9595 1. Not more than forty -five (45) days or less than thirty -five
9696 (35) days prior to the conve ning of each regular session of the
9797 Legislature, the State Board of Equalization shall certify the total
9898 amount of revenue which accrued during the last preceding fiscal
9999 year to the General Revenue Fund and to each Special Rev enue Fund
100100 appropriated directl y by the Legislature, and shall further certify
101101 amounts available for appropriation which shall be based on a
102102 determination, in accordance with the procedure hereinafter
103103 provided, of the revenues to be received by the state un der the laws
104104 in effect at the time such determination is made, for the next
105105 ensuing fiscal year, showing separately the revenues to accrue to
106106 the credit of each such fund of the state appropriated directly by
107107 the Legislature.
108108 Amounts certified as available for appropriation from each f und,
109109 as hereinbefore provided, shall be ninety -five percent (95%) of an
110110 itemized estimate made by the State Board of Equalization, which
111111 shall include all sources of revenue to each fund for the next
112112 ensuing fiscal year; provi ded, however, appropriated fed eral funds
113113 shall be certified for the full amount of the estimate. Said
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140140 estimate shall consider any increase or decline in revenues that
141141 would result from predictable changes in the economy.
142142 Legislative appropriations for any fiscal year, except for
143143 special appropriations provided for in paragraph 6, 7 or 8 shall be
144144 limited to a sum not to exceed the total amount appropriated from
145145 all funds in the preceding fiscal year, plus twelve percent (12%),
146146 adjusted for inflation for the previous calendar year. Said limit
147147 shall be adjusted for funds not previously appropriated. The limit
148148 on the growth of appropriations shall be certified to by the State
149149 Board of Equalization.
150150 2. Such certification shall be filed with the Governor, the
151151 President and President Pro Te mpore of the Senate, and the Speaker
152152 of the House of Representatives. The Legislature shall not pass or
153153 enact any bill, act or measure making an appropriation of money for
154154 any purpose until such certification is made and file d, unless the
155155 State Board of Equalization has failed to file said certification at
156156 the time of convening of said Legislature. In such event, it shall
157157 be the duty of the Legislature to make such certification pursuant
158158 to the provisions of this section. Al l appropriations made in
159159 excess of such certification shall be null and void; provided,
160160 however, that the Legislature may at any regular session or special
161161 session, called for that purpose, enact laws to provide for
162162 additional revenues or a reduction in re venues, other than ad
163163 valorem taxes, or transferring the existing revenues or
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190190 unappropriated cash on hand from one fund to another, or making
191191 provisions for appropriating funds not previously appropriated
192192 directly by the Legislature. Whereupon, it shall b e the duty of the
193193 State Board of Equalization to make a determination of the revenues
194194 that will accrue under such laws and ninety -five percent (95%) of
195195 the amount of any increase or decrease resulting, for any reason,
196196 from such changes in laws shall be add ed to or deducted from the
197197 amount previously certified available for appropriation from each
198198 respective fund, as the case may be. The State Board of
199199 Equalization shall file the amount of such adjusted certification,
200200 or additional certification for funds n ot previously appropriated
201201 directly by the Legislature, with the Governor, with the President
202202 and President Pro Tempore of the Senate, and the Speaker of the
203203 House of Representatives, and such adjusted amount shall be the
204204 maximum amount which can be approp riated for all purposes from a ny
205205 such fund for the fiscal year being certified.
206206 3. The State Board of Equalization shall meet within five (5)
207207 days after the monthly apportionment in February of each year, and
208208 at that time may adjust the certification, bas ed upon the most
209209 current information available, and determine the amount of funds
210210 available for appropriation for that legislative session. At said
211211 meeting the Board shall determine the limit on the growth of
212212 appropriations as provided for in this section .
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239239 4. Surplus funds or monies shall be any amount accruing to the
240240 General Revenue Fund of the State of Oklahoma over and above the
241241 itemized estimate made by the State Board of Equalization.
242242 5. All such surplus funds or monies shall be placed in a
243243 Constitutional Reserve Fund by the Sta te Treasurer until such time
244244 that the amount of said Fund equals fifteen percent (15%) of the
245245 General Revenue Fund certification for the preceding fiscal year
246246 total state expenditures for the fiscal year ending on June 30
247247 immediately preceding the month of the succeeding fiscal year during
248248 which the surplus monies are deposited into the Constitutional
249249 Reserve Fund, such expenditures to be computed using expenditures
250250 from funds from which the Legislature appropriates money, incl usive
251251 of all federal funds, bu t exclusive of monies expended from
252252 revolving funds, exclusive of any expenditures from a fund from
253253 which public monies are derived from fees or other charges not
254254 consisting of tax revenues, and exclusive of the proceeds from any
255255 general obligation bond or other evidence of indebtedness issued by
256256 a state governmental entity and which is repaid in whole or in part
257257 using executive branch agency appropriations or appropriations to
258258 The Oklahoma State System of Higher Education . Appropriations made
259259 from said Fund shall be considered special appropriations.
260260 6. a. Up to three-eighths (3/8) of the balance at the
261261 beginning of the current fiscal year in the
262262 Constitutional Reserve Fund may be appropriated for
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289289 the forthcoming fiscal year, when the certification by
290290 the State Board of Equalization for said forthcoming
291291 fiscal year General Revenue Fund is less than that of
292292 the current fiscal year certification. In no event
293293 shall the amount of monies appropriated from the
294294 Constitutional Reserve Fund be in excess of the
295295 difference between the two said certifications.
296296 b. (1) In years when the provisions of subparagraph a of
297297 this paragraph are not applicable and the balance
298298 at the beginning of the current fiscal year in
299299 the Constitutional Reserve F und is equal to or
300300 greater than Eighty Million Dollars
301301 ($80,000,000.00), up to Ten Million Dollars
302302 ($10,000,000.00) may be expended for the purpose
303303 of providing incentives to support retention of
304304 at-risk manufacturing establishments in this
305305 state in order to retain employment for resid ents
306306 of this state. Such incentives shall be paid by
307307 the Oklahoma Tax Commission upon a unanimous
308308 finding by the Governor, the Speaker of the House
309309 of Representatives and the President Pro Tempore
310310 of the Senate that:
311311 (a) such incentives have been recommen ded by an
312312 independent committee created by the
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339339 Legislature for such purposes as provided
340340 herein pursuant to criteria set out by law,
341341 (b) the incentive will result in a substantial
342342 benefit to this state, and
343343 (c) payment of the incentive would be in
344344 accordance with the provisions of this
345345 subparagraph and laws enacted to implement
346346 provisions of this subparagraph.
347347 (2) The independent committee will be composed of not
348348 less than seven (7) people appointed or otherwise
349349 determined pursuant to laws enacted by the
350350 Legislature providing for membership on the
351351 committee. The committee shall make
352352 recommendations to the Governor, the Speaker of
353353 the House of Representatives and the President
354354 Pro Tempore of the Senate for the awarding of
355355 incentives. Such recommendations sh all give
356356 priority to establishments which:
357357 (a) are at greater risk of losing jobs because
358358 the plant is no longer competitive or
359359 leaving the state and thereby causing the
360360 loss of more employment in this state than
361361 other eligible recipients, and
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388388 (b) provide the largest economic impact to the
389389 state.
390390 (3) For any fiscal year, the incentives shall not
391391 exceed ten percent (10%) of the amount invested
392392 by an establishment in capital assets to be
393393 utilized in this state. Incentives may on ly be
394394 paid pursuant to an inve stment contract between
395395 the establishment and a state agency designated
396396 by law, which provides for a specified amount of
397397 investment in a capital asset to be made by the
398398 establishment over a period of not to exceed five
399399 (5) years. No incentive payment shal l be made
400400 prior to the actual investment by the
401401 establishment. The contract shall make payment
402402 of any incentives in any fiscal year contingent
403403 on the balance at the beginning of such fiscal
404404 year in the Constitutional Reserve Fund being
405405 equal to or greater than Eighty Million Dollars
406406 ($80,000,000.00) and on the certification by the
407407 State Board of Equalization for such fiscal year
408408 of the amount available for appropriation from
409409 the General Revenue Fund being greater than the
410410 amount certified for the preceding fiscal year.
411411 Investment contracts authorized by this
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438438 subparagraph shall provide that if any incentive
439439 payment is payable during a fiscal year in which
440440 either the balance at the beginning of the fiscal
441441 year in the Constitutio nal Reserve Fund is not
442442 equal to or greater than Eighty Million Dollars
443443 ($80,000,000.00) or when the certification by the
444444 State Board of Equalization for such fiscal year
445445 General Revenue Fund is less than that of the
446446 immediately prior fiscal year certifica tion, then
447447 any incentive payments which would have been
448448 payable during such fiscal year shall be payable
449449 in the first fiscal year when funds are available
450450 pursuant to the provisions of division (1) of
451451 this subparagraph. In the event that the amount
452452 of incentives payable under investme nt contracts
453453 authorized by this subparagraph is greater than
454454 the amounts available for payment under this
455455 subparagraph in a fiscal year, then no new
456456 contracts may be authorized during such year and
457457 incentive payments which are made shall be
458458 reduced pro rata as necessary to apply all
459459 available funds to incentive payments which are
460460 payable in such year.
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487487 (4) The Legislature is authorized to enact laws
488488 necessary to implement the provisions of this
489489 section.
490490 7. Up to three-eighths (3/8) of the balance at the beg inning of
491491 the current fiscal year in the Constitutional Reserve Fund may be
492492 appropriated for the current fiscal year if the State Board of
493493 Equalization determines that a revenue failure has occurred with
494494 respect to the General Revenue Fund of the State Tre asury. In no
495495 event shall the amount of monies appropriated from the
496496 Constitutional Reserve Fund pursuant to this paragraph be in excess
497497 of the amount of the projected revenue failure in the General
498498 Revenue Fund, which total a mount shall be computed by the State
499499 Board of Equalization, for the entire fiscal year. Monies
500500 appropriated to any state governmental entity from the
501501 Constitutional Reserve Fund pursuant to this paragraph may only be
502502 made in order to ensure that the monie s actually received by the
503503 entity for the then current fiscal year are equal to or less than,
504504 but not in excess of, the total appropriation amount for such entity
505505 in effect at the beginning of the then current fiscal year.
506506 8. Up to one-quarter (1/4) of the balance at the beginning of
507507 the current fiscal year in the Constitutional Reserve Fund may be
508508 appropriated, upon a declaration by the Governor that emergency
509509 conditions exist, with concurrence of the Legislature by a
510510 two-thirds (2/3) vote of the House of Representatives and Senate fo r
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537537 the appropriation; or said one -quarter (1/4) could be appropriated
538538 upon a joint declaration of emergency conditions by the Speaker of
539539 the House of Representatives and the President Pro Tempore of the
540540 Senate, with a concurren ce of a three-fourths (3/4) vote of the
541541 House of Representatives and Senate.
542542 9. That portion of every appropriation, at the end of each
543543 fiscal year, in excess of actual revenues collected and allocated
544544 thereto, as hereinafter provided, shall be null and v oid. Revenues
545545 deposited in the State Treasury to the credit of the General Revenue
546546 Fund or of any special fund (which derives its revenue in whole or
547547 in part from state taxes or fees) shall, except as to principal and
548548 interest on the public debt, be alloc ated monthly to each
549549 department, institution, board, commission or special appropriation
550550 on a percentage basis, in that ratio that the total appropriation
551551 for such department, institution, board, commission or special
552552 appropriation from each fund for that fiscal year bears to the total
553553 of all appropriations from each fund for that fiscal year, and no
554554 warrant shall be issued in excess of said allocation. Any
555555 department, institution or agency of the state operating on revenues
556556 derived from any law or laws wh ich allocate the revenues ther eof to
557557 such department, institution or agency shall not incur obligations
558558 in excess of the unencumbered balance of cash on hand. Nothing in
559559 this section shall prevent, under such conditions and limitations as
560560 shall be prescribed by law, the governing boar d of an institution of
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587587 higher education within The Oklahoma State System of Higher
588588 Education from contracting with a president of such institution of
589589 higher education for periods extending more than one (1) year, but
590590 not to exceed three (3) years beyond th e fiscal year in which the
591591 contract is signed.
592592 10. The Legislature shall provide a method whereby
593593 appropriations shall be divided and set up on a monthly, quarterly
594594 or semiannual basis within each fiscal year to prevent oblig ations
595595 being incurred in exces s of the revenue to be collected, and
596596 notwithstanding other provisions of this Constitution, the
597597 Legislature shall provide that all appropriations shall be reduced
598598 to bring them within revenues actually collected, but all such
599599 reductions shall apply to eac h department, institution, board,
600600 commission or special appropriation made by the State Legislature in
601601 the ratio that its total appropriation for that fiscal year bears to
602602 the total of all appropriations from that fund for tha t fiscal year;
603603 provided, however, that the Governor shall have discretion to issue
604604 deficiency certificates to the State Treasurer for the benefit of
605605 any department, institution or agency of the state, if the amount of
606606 such deficiency certificates be within the limit of the current
607607 appropriation for that department, institution or agency, whereupon
608608 the State Treasurer shall issue warrants to the extent of such
609609 certificates for the payment of such claims as may be authorized by
610610 the Governor, and such warrants shall become a part of the pu blic
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637637 debt and shall be paid out of any money appropriated by the
638638 Legislature and made lawfully available therefor; provided further,
639639 that in no event shall said deficiency certificates exceed in the
640640 aggregate the sum of Five H undred Thousand Dollars ($500, 000.00) in
641641 any fiscal year.
642642 SECTION 2. The Ballot Title for the proposed Constitutional
643643 amendment as set forth in SECTION 1 of this resolution shall be in
644644 the following form:
645645 BALLOT TITLE
646646 Legislative Referendu m No. ____ State Question No. ____
647647 THE GIST OF THE PROPOSITION IS AS FOLLOWS:
648648 This measure amends the Oklahoma Constitution. It amends
649649 Section 23 of Article 10. The Constitutional Reserve Fund is
650650 also known as the Rainy Day Fund. The Fund has a maximum
651651 allowed balance. This measure changes the way the maximum
652652 balance amount would be computed. Instead of using revenue
653653 estimates provided by the State Board of Equalization for the
654654 annual appropriations process, the maximum balance allowed for
655655 the Rainy Day Fund would be based on a per centage of total state
656656 expenditures. Total expenditures would include all appropriated
657657 monies and federal funds. Total expenditures would exclude
658658 money from revolving funds which are used by state agencies.
659659 Total expenditures would exclude fees or simil ar charges that
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686686 were not derived from tax revenue. Total expenditures would
687687 exclude money obtained by issuing state government bonds.
688688 SHALL THE PROPOSAL BE APPROVED?
689689 FOR THE PROPOSAL — YES _____________
690690 AGAINST THE PROPOSAL — NO _____________
691691 SECTION 3. The Chief Clerk of the House of Representatives,
692692 immediately after the passage of this resolution, shall prepare and
693693 file one copy thereof, including the Ballot Title set forth in
694694 SECTION 2 hereof, with the Se cretary of State and one copy with the
695695 Attorney General.
696696
697697 59-1-5455 MAH 12/28/22