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| 5 | 5 | | 2023 -- S 0262 |
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| 6 | 6 | | ======== |
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| 7 | 7 | | LC000953 |
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| 8 | 8 | | ======== |
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| 9 | 9 | | S TATE OF RHODE IS LAND |
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| 10 | 10 | | IN GENERAL ASSEMBLY |
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| 11 | 11 | | JANUARY SESSION, A.D. 2023 |
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| 12 | 12 | | ____________ |
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| 13 | 13 | | |
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| 14 | 14 | | A N A C T |
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| 15 | 15 | | RELATING TO PUBLIC FINANCE -- STATE BUDGET |
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| 16 | 16 | | Introduced By: Senators de la Cruz, Rogers, DeLuca, E Morgan, Burke, and Raptakis |
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| 17 | 17 | | Date Introduced: February 16, 2023 |
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| 18 | 18 | | Referred To: Senate Finance |
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| 19 | 19 | | |
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| 20 | 20 | | |
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| 21 | 21 | | It is enacted by the General Assembly as follows: |
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| 22 | 22 | | SECTION 1. Sections 35-3-4, 35-3-7 and 35-3-9 of the General Laws in Chapter 35-3 1 |
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| 23 | 23 | | entitled "State Budget" are hereby amended to read as follows: 2 |
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| 24 | 24 | | 35-3-4. Estimates submitted by department heads. 3 |
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| 25 | 25 | | (a) On dates determined by the budget officer, but not later than the first day of October in 4 |
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| 26 | 26 | | each year, each head of a department of the state government, not including the general assembly 5 |
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| 27 | 27 | | or the judiciary, shall assemble, correlate, and revise, with power to increase or decrease, the 6 |
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| 28 | 28 | | estimates for expenditures and requests for appropriations for the next ensuing fiscal year of each 7 |
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| 29 | 29 | | of the divisions, boards, commissions, officers, bureaus, institutions, or agencies of the state 8 |
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| 30 | 30 | | included within his or her department, and, after this revision, shall prepare an itemized 9 |
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| 31 | 31 | | departmental estimate of the appropriations necessary to meet the financial needs of the department, 10 |
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| 32 | 32 | | including a statement in detail of all moneys for which any general or special appropriation is 11 |
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| 33 | 33 | | desired at the ensuing session of the general assembly. The estimate shall be in such form, and in 12 |
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| 34 | 34 | | such number of copies, and with such explanation as the budget officer may require, and, on dates 13 |
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| 35 | 35 | | determined by the budget officer, but not later than the first day of October in each year, shall be 14 |
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| 36 | 36 | | submitted to the governor through the budget officer and to the fiscal advisors of the house and 15 |
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| 37 | 37 | | senate. 16 |
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| 38 | 38 | | (b) The estimates shall also include a supplemental presentation of estimates of 17 |
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| 39 | 39 | | expenditures for information resources and information technologies as defined in § 29-8-2 18 |
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| 40 | 40 | | [repealed], regardless of source of financing. The estimate shall include a detailed listing and 19 |
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| 41 | 41 | | |
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| 42 | 42 | | |
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| 43 | 43 | | LC000953 - Page 2 of 6 |
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| 44 | 44 | | explanation of expenses and the source of funds and shall be in such form, and in such number of 1 |
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| 45 | 45 | | copies, and with such explanation as the budget officer may require. Copies shall be provided 2 |
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| 46 | 46 | | directly to the house fiscal advisor, the senate fiscal advisor, and the Rhode Island information 3 |
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| 47 | 47 | | resources management board. 4 |
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| 48 | 48 | | (c) Commencing with the fiscal year beginning on July 1, 2024, and in accordance with 5 |
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| 49 | 49 | | the schedule provided in this section, the estimates for expenditures and requests for appropriations 6 |
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| 50 | 50 | | shall be based upon a justification by each department head of the budget of the department from 7 |
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| 51 | 51 | | a zero base. The budget request shall be accompanied by a statement giving facts and explanations 8 |
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| 52 | 52 | | of reasons for each item requested. It shall include a brief explanation of the functions of each of 9 |
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| 53 | 53 | | the divisions, boards, commissions, officers, bureaus, institutions, or agencies of the state included 10 |
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| 54 | 54 | | within the department and comments on its policies and plans, with such descriptive, quantitative, 11 |
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| 55 | 55 | | comparative and other data as to work done and other information as is considered necessary or 12 |
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| 56 | 56 | | desirable. "Zero-based budget" requests, so-called, are requests for appropriations based upon a 13 |
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| 57 | 57 | | justification of a department from a zero base as if the budget for the department was being initiated 14 |
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| 58 | 58 | | for the first time and shall be required based upon the following schedule: 15 |
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| 59 | 59 | | (1) Beginning with the fiscal year beginning July 1, 2025, zero-based budgets shall be 16 |
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| 60 | 60 | | submitted by twenty percent (20%) of state departments, being those departments which submitted 17 |
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| 61 | 61 | | the lowest budget requests for the fiscal year beginning July 1, 2024; 18 |
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| 62 | 62 | | (2) Beginning with the next fiscal year, zero-based budgets shall be submitted by twenty 19 |
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| 63 | 63 | | percent (20%) of state departments, being those submitting the lowest budget requests for the fiscal 20 |
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| 64 | 64 | | year beginning July 1, 2025, except for those departments included in subsection (c)(1) of this 21 |
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| 65 | 65 | | section; 22 |
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| 66 | 66 | | (3) Beginning with the next fiscal year, zero-based budget requests shall be submitted by 23 |
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| 67 | 67 | | twenty percent (20%) of state departments submitting the lowest budget requests for the fiscal year 24 |
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| 68 | 68 | | beginning July 1, 2026, except for those departments included in subsections (c)(1) and (2) of this 25 |
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| 69 | 69 | | section; 26 |
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| 70 | 70 | | (4) Beginning with the next fiscal year, zero-based budget requests shall be submitted by 27 |
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| 71 | 71 | | twenty percent (20%) of state departments submitting the lowest budget requests for the fiscal year 28 |
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| 72 | 72 | | beginning July 1, 2027, except for those departments included in subsections (c)(1),(2), and (3) of 29 |
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| 73 | 73 | | this section; and 30 |
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| 74 | 74 | | (5) For the fiscal year beginning July 1, 2028, and thereafter, zero-based budgets shall be 31 |
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| 75 | 75 | | submitted by all remaining state departments. 32 |
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| 76 | 76 | | (d) The budget officer shall provide copies of all submitted zero-based budgets to the house 33 |
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| 77 | 77 | | fiscal advisor and senate fiscal advisor. 34 |
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| 78 | 78 | | |
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| 79 | 79 | | |
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| 80 | 80 | | LC000953 - Page 3 of 6 |
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| 81 | 81 | | 35-3-7. Submission of budget to general assembly — Contents. 1 |
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| 82 | 82 | | (a) On or before the third Thursday in January in each year of each January session of the 2 |
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| 83 | 83 | | general assembly, the governor shall submit to the general assembly a budget containing a complete 3 |
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| 84 | 84 | | plan of estimated revenues and proposed expenditures, with a personnel supplement detailing the 4 |
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| 85 | 85 | | number and titles of positions of each agency and the estimates of personnel costs for the next fiscal 5 |
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| 86 | 86 | | year, and with the inventory required by § 35-1.1-3(b)(5). Provided, however, in those years that a 6 |
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| 87 | 87 | | new governor is inaugurated, the new governor shall submit the budget on or before the first 7 |
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| 88 | 88 | | Thursday in February. Beginning with the fiscal year beginning July 1, 2024, and in accordance 8 |
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| 89 | 89 | | with the schedule set forth in § 35-3-4, the budget submitted by the governor shall be a partial 9 |
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| 90 | 90 | | "zero-based budget," a budget based upon a justification of each department's estimate of 10 |
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| 91 | 91 | | expenditures and requests for appropriations from a zero base. In accordance with the schedule set 11 |
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| 92 | 92 | | forth in § 35-3-4, the entire budget for the fiscal year beginning July 1, 2028, shall be a zero based 12 |
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| 93 | 93 | | budget. 13 |
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| 94 | 94 | | In the budget the governor may set forth in summary and detail: 14 |
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| 95 | 95 | | (1) Estimates of the receipts of the state during the ensuing fiscal year under laws existing 15 |
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| 96 | 96 | | at the time the budget is transmitted and also under the revenue proposals, if any, contained in the 16 |
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| 97 | 97 | | budget, and comparisons with the estimated receipts of the state during the current fiscal year, as 17 |
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| 98 | 98 | | well as actual receipts of the state for the last two (2) completed fiscal years. 18 |
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| 99 | 99 | | (2) Estimates of the expenditures and appropriations necessary in the governor’s judgment 19 |
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| 100 | 100 | | for the support of the state government for the ensuing fiscal year, and comparisons with 20 |
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| 101 | 101 | | appropriations for expenditures during the current fiscal year, as well as actual expenditures of the 21 |
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| 102 | 102 | | state for the last two (2) complete fiscal years; provided, further, in the event the budget submission 22 |
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| 103 | 103 | | includes any transfers of resources from public corporations to the general fund, the budget 23 |
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| 104 | 104 | | submission shall also include alternatives to said transfers. 24 |
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| 105 | 105 | | (3) Financial statements of the: 25 |
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| 106 | 106 | | (i) Condition of the treasury at the end of the last completed fiscal year; 26 |
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| 107 | 107 | | (ii) Estimated condition of the treasury at the end of the current fiscal year; and 27 |
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| 108 | 108 | | (iii) Estimated condition of the treasury at the end of the ensuing fiscal year if the financial 28 |
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| 109 | 109 | | proposals contained in the budget are adopted. 29 |
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| 110 | 110 | | (4) All essential facts regarding the bonded and other indebtedness of the state. 30 |
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| 111 | 111 | | (5) A report indicating those program revenues and expenditures whose funding source is 31 |
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| 112 | 112 | | proposed to be changed from state appropriations to restricted receipts, or from restricted receipts 32 |
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| 113 | 113 | | to other funding sources. 33 |
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| 114 | 114 | | (6) Such other financial statements and data as in the governor’s opinion are necessary or 34 |
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| 115 | 115 | | |
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| 116 | 116 | | |
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| 117 | 117 | | LC000953 - Page 4 of 6 |
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| 118 | 118 | | desirable. 1 |
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| 119 | 119 | | (b) Any other provision of the general laws to the contrary notwithstanding, the proposed 2 |
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| 120 | 120 | | appropriations submitted by the governor to the general assembly for the next ensuing fiscal year 3 |
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| 121 | 121 | | should not be more than five and one-half percent (5.5%) in excess of total state appropriations, 4 |
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| 122 | 122 | | excluding any estimated supplemental appropriations, enacted by the general assembly for the 5 |
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| 123 | 123 | | fiscal year previous to that for which the proposed appropriations are being submitted; provided 6 |
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| 124 | 124 | | that the increased state-share provisions required to achieve fifty percent (50%) state financing of 7 |
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| 125 | 125 | | local school operations as provided for in P.L. 1985, ch. 182, shall be excluded from the definition 8 |
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| 126 | 126 | | of total appropriations. 9 |
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| 127 | 127 | | (c) Notwithstanding the provisions of subsection (a) of this section, the governor shall 10 |
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| 128 | 128 | | submit to the general assembly a budget for the fiscal year ending June 30, 2006, not later than the 11 |
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| 129 | 129 | | fourth (4th) Thursday in January 2005. 12 |
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| 130 | 130 | | (d) Notwithstanding the provisions of subsection (a) of this section, the governor shall 13 |
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| 131 | 131 | | submit to the general assembly a supplemental budget for the fiscal year ending June 30, 2006, 14 |
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| 132 | 132 | | and/or a budget for the fiscal year ending June 30, 2007, not later than Thursday, January 26, 2006. 15 |
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| 133 | 133 | | (e) Notwithstanding the provisions of subsection (a) of this section, the governor shall 16 |
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| 134 | 134 | | submit to the general assembly a supplemental budget for the fiscal year ending June 30, 2007, 17 |
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| 135 | 135 | | and/or a budget for the fiscal year ending June 30, 2008, not later than Wednesday, January 31, 18 |
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| 136 | 136 | | 2007. 19 |
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| 137 | 137 | | (f) Notwithstanding the provisions of subsection (a) of this section, the governor shall 20 |
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| 138 | 138 | | submit to the general assembly a budget for the fiscal year ending June 30, 2012, not later than 21 |
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| 139 | 139 | | Thursday, March 10, 2011. 22 |
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| 140 | 140 | | (g) Notwithstanding the provisions of subsection (a) of this section, the governor shall 23 |
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| 141 | 141 | | submit to the general assembly a budget for the fiscal year ending June 30, 2013, not later than 24 |
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| 142 | 142 | | Tuesday, January 31, 2012. 25 |
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| 143 | 143 | | (h) Notwithstanding the provisions of subsection (a) of this section, the governor shall 26 |
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| 144 | 144 | | submit to the general assembly a budget for the fiscal year ending June 30, 2016, not later than 27 |
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| 145 | 145 | | Thursday, March 12, 2015. 28 |
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| 146 | 146 | | (i) Notwithstanding the provisions of subsection (a) of this section, the governor shall 29 |
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| 147 | 147 | | submit to the general assembly a budget for the fiscal year ending June 30, 2022, not later than 30 |
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| 148 | 148 | | Thursday, March 11, 2021. 31 |
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| 149 | 149 | | 35-3-9. Action on bills by house committee — Hearings. 32 |
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| 150 | 150 | | (a) The budget plan and bill or bills for proposed appropriations, when sent by the governor 33 |
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| 151 | 151 | | to the general assembly, shall be referred as soon as practicable to an appropriate committee of the 34 |
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| 152 | 152 | | |
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| 153 | 153 | | |
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| 154 | 154 | | LC000953 - Page 5 of 6 |
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| 155 | 155 | | house of representatives, and upon receipt of the budget plan the committee shall refer it to a budget 1 |
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| 156 | 156 | | panel consisting of three (3) persons: one of whom shall be appointed by the speaker of the house; 2 |
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| 157 | 157 | | one of whom shall be appointed by the house minority leader; and one of whom shall be appointed 3 |
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| 158 | 158 | | by the senate president. The members of the panel shall be persons with expertise and experience 4 |
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| 159 | 159 | | in the areas of finance or accounting. The panel shall review the budget plan and shall consider the 5 |
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| 160 | 160 | | objectives, operations, and costs of all activities of each department; explore alternative means of 6 |
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| 161 | 161 | | conducting the activities of each department; evaluate alternative budget amounts for various levels 7 |
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| 162 | 162 | | of effort for each activity of each department. The panel shall report its findings and make its 8 |
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| 163 | 163 | | recommendations as to the needs of each department, the programs and activities of each 9 |
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| 164 | 164 | | department and all other recommendations and information that it deems appropriate, to the 10 |
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| 165 | 165 | | committee, within thirty (30) days after the budget plan is referred to it. 11 |
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| 166 | 166 | | (b) The committee shall proceed to the consideration of the bill upon receipt of this 12 |
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| 167 | 167 | | recommendation of the panel. The committee shall hear the budget officer upon the bill as a whole 13 |
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| 168 | 168 | | or upon any item thereof or any proposed amendment thereto as each may elect, and the committee 14 |
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| 169 | 169 | | may summon the budget officer to appear before it and to furnish such information relative to the 15 |
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| 170 | 170 | | bill or any item therein, or any proposed amendment thereto, as it may require, and the committee 16 |
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| 171 | 171 | | may in its discretion hear the proper person representing any department or agency desiring to be 17 |
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| 172 | 172 | | heard with respect to any item or amendment in the bill relating to the department or agency; 18 |
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| 173 | 173 | | provided, that nothing contained in this section shall be construed to limit the right of the committee 19 |
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| 174 | 174 | | to hold public hearings upon the bill as a whole or upon any item therein, or to summon any person 20 |
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| 175 | 175 | | for examination regarding any item contained therein, or for the purpose of obtaining information 21 |
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| 176 | 176 | | necessary for a full and proper consideration of the bill. The committee, after the consideration of 22 |
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| 177 | 177 | | the bill, shall report the bill with its recommendation endorsed thereon to the house of 23 |
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| 178 | 178 | | representatives. 24 |
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| 179 | 179 | | SECTION 2. This act shall take effect upon passage. 25 |
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| 181 | 181 | | LC000953 |
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| 182 | 182 | | ======== |
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| 183 | 183 | | |
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| 184 | 184 | | |
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| 185 | 185 | | LC000953 - Page 6 of 6 |
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| 186 | 186 | | EXPLANATION |
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| 187 | 187 | | BY THE LEGISLATIVE COUNCIL |
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| 188 | 188 | | OF |
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| 189 | 189 | | A N A C T |
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| 190 | 190 | | RELATING TO PUBLIC FINANCE -- STATE BUDGET |
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| 191 | 191 | | *** |
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| 192 | 192 | | This act would require that the governor submit a zero-based budget to the general 1 |
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| 193 | 193 | | assembly with the zero-based budget phased in over a five (5) year period, commencing with the 2 |
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| 194 | 194 | | fiscal budget year of July 1, 2024. 3 |
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| 195 | 195 | | This act would take effect upon passage. 4 |
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| 197 | 197 | | LC000953 |
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