PRIOR PRINTER'S NO. 293 PRINTER'S NO. 2772
No. 261 Session of 2007
INTRODUCED BY D. EVANS, CALTAGIRONE, CAPPELLI, CURRY, DePASQUALE, FREEMAN, GALLOWAY, HARHAI, HARPER, JAMES, JOSEPHS, W. KELLER, KING, LEACH, MARSHALL, PARKER, PASHINSKI, SHAPIRO, SOLOBAY, STURLA, THOMAS, WANSACZ, WHEATLEY, YOUNGBLOOD, SAYLOR, BELFANTI, FRANKEL, DALEY, DENLINGER, PAYTON, WALKO AND GRELL, FEBRUARY 6, 2007
AS REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF REPRESENTATIVES, AS AMENDED, OCTOBER 29, 2007
AN ACT 1 Amending the act of April 9, 1929 (P.L.177, No.175), entitled 2 "An act providing for and reorganizing the conduct of the 3 executive and administrative work of the Commonwealth by the 4 Executive Department thereof and the administrative 5 departments, boards, commissions, and officers thereof, 6 including the boards of trustees of State Normal Schools, or 7 Teachers Colleges; abolishing, creating, reorganizing or 8 authorizing the reorganization of certain administrative 9 departments, boards, and commissions; defining the powers and 10 duties of the Governor and other executive and administrative 11 officers, and of the several administrative departments, 12 boards, commissions, and officers; fixing the salaries of the 13 Governor, Lieutenant Governor, and certain other executive 14 and administrative officers; providing for the appointment of 15 certain administrative officers, and of all deputies and 16 other assistants and employes in certain departments, boards, 17 and commissions; and prescribing the manner in which the 18 number and compensation of the deputies and all other 19 assistants and employes of certain departments, boards and 20 commissions shall be determined," further providing, in 21 budget procedures, for revenue estimates, for transmission of 22 budget information to legislature, for budget implementation 23 data and for electronic access to information; and 24 establishing the Independent Fiscal Review Board. 25 The General Assembly of the Commonwealth of Pennsylvania 26 hereby enacts as follows:
1 Section 1. Sections 618 and 619 of the act of April 9, 1929 2 (P.L.177, No.175), known as The Administrative Code of 1929, 3 added September 27, 1978 (P.L.775, No.149), are amended to read: 4 Section 618. Revenue Estimates.--(a) The Department of 5 Revenue in conjunction with the Secretary of the Budget shall 6 make revenue estimates for the use of the Governor in preparing 7 the budget with periodic revisions until the final estimate is 8 signed by the Governor not later than the time he signs the 9 general appropriation bill. The revenue estimates used to sign 10 any appropriation bill shall show separately State revenues, 11 Federal funds, and, if specifically appropriated, funds from 12 other sources. The Governor shall item veto any part of any 13 appropriation bill that causes total appropriations to exceed 14 the official estimate plus any unappropriated surplus. No 15 changes in the revenue estimates shall be made thereafter unless 16 changes in statutes affecting revenues and receipts are enacted. 17 (b) The revenue estimates shall be prepared in a way that 18 they are subject to complete and thorough oversight by the 19 Appropriations Committees of the Senate and the House of 20 Representatives and the Independent Fiscal Review Board with 21 full knowledge of all data, assumptions, and econometric models 22 which were used to develop the projections and any subsequent 23 revisions of these projections. 24 (c) A committee consisting of the Governor, the Secretary of 25 the Budget, the Secretary of Revenue [and the Chairmen], the 26 Chairs of the Appropriations Committees of the Senate and the 27 House of Representatives and the Chair of the Independent Fiscal 28 Review Board is hereby established to oversee the development, 29 maintenance and/or use of econometric models which may be 30 applied in the forecasting of State revenues. A model or models 20070H0261B2772 - 2 -
1 shall be developed for this purpose in the event that one does 2 not currently exist. The Governor's Office shall maintain and 3 update the model or models or appoint an appropriate agency or 4 agencies to perform this responsibility. The Governor's Office 5 shall inform the Oversight Committee of any changes to be made 6 to the model or models to keep it updated. The equations of the 7 model or models and any historic data bases related thereto 8 shall be available to any member of the Oversight Committee or 9 to the Minority [Chairman] Chair of the Appropriations Committee 10 of the Senate or House of Representatives upon request at any 11 time for any reason. Members of the Oversight Committee or the 12 Minority [Chairman] Chair of the Appropriations Committee of the 13 Senate or the House of Representatives may request the 14 Governor's Office or the appropriate agency to run the model or 15 models for any purpose including the testing of new equations 16 and to produce forecasts. Forecasts produced by the model or 17 models and any forecasted data bases related thereto shall be 18 kept confidential by the Governor's Office and the appropriate 19 agency or agencies producing these forecasts until or unless the 20 individual requesting such forecast shall release them from this 21 requirement. In no way shall this confidentiality provision be 22 construed to prevent access by the Appropriations Committees of 23 the Senate or House of Representatives or the Independent Fiscal 24 Review Board to forecasts used in the preparation of the 25 Governor's revenue estimates after the presentation of the 26 budget as required in section 619(b). 27 Section 619. Transmission of Budget Information to the 28 General Assembly.--(a) In December of each year, the Governor 29 shall meet with the Majority and Minority [Chairmen] Chairs of 30 the Appropriations Committees and the officers of the General 20070H0261B2772 - 3 -
1 Assembly to brief the legislative leadership on the issues he 2 can foresee as being imminent in the budget for the next fiscal 3 year and exchange views with them on issues on the budget before 4 it is formally submitted to the General Assembly. The Governor's 5 briefing shall include: 6 (1) Major anticipated increases or decreases in programs. 7 (2) The results or anticipated results of employee union 8 negotiations for salaries, wages and other benefits. 9 (3) The statistics involved in preliminary forecasts of the 10 major programs mandated by statute such as education subsidies, 11 all public assistance programs, debt service and forecasts of 12 revenue. 13 (4) Other appropriate budget information. 14 The legislative officers shall also inform the Governor of 15 financial matters which should be considered in the budget. 16 (a.1) At the same time that the Governor presents the budget 17 to the General Assembly, the Governor shall, as provided in 18 section 2810-D 2809-D, present a documented revenue forecast as <-- 19 defined in section 2802-D. 20 (b) In the year the Governor is inaugurated, the Governor 21 shall present the budget to the General Assembly no later than 22 the first full week in March and in other years, no later than 23 the first full week in February. 24 (c) The budget shall include the results of any program 25 evaluation report completed by the Budget Office in the fiscal 26 year preceding the year in which the budget request is made. The 27 results of the evaluation report and its recommendations shall 28 be summarized and included in the budget documentation. 29 (d) The Governor and each department or agency of the 30 Commonwealth, upon request of the [Chairman] Chair of the 20070H0261B2772 - 4 -
1 Appropriations Committees of either the Senate or the House of 2 Representatives, shall provide documentation of any budget 3 request, including revenue estimates upon which the Governor's 4 budget estimate is based. 5 Section 2. Section 620 of the act, amended November 26, 1997 6 (P.L.530, No.57), is amended to read: 7 Section 620. Budget Implementation Data.--(a) The Governor 8 shall make monthly expenditure data available to the Majority 9 and Minority [Chairmen] Chairs of the Appropriations Committees 10 of the Senate and the House of Representatives. Monthly data 11 shall be provided within fifteen (15) days after the end of each 12 month. The monthly data shall be prepared in such a way that the 13 last monthly submission is a summary inclusive of the preceding 14 months of the fiscal year and shall be usable to establish a 15 history of expenditure file. This data, at the discretion of the 16 Majority and Minority [Chairmen] Chairs of the Appropriations 17 Committees of the Senate and the House of Representatives may be 18 provided either in finished reports or on computer tapes. The 19 data shall be provided by fund, by appropriation, by department 20 and by organization within each department and shall include: 21 (1) Number of filled personnel positions and their cost. 22 (2) Itemized personnel vacancies and their cost. 23 (3) New positions created and their cost. 24 (4) Wage and overtime costs. 25 (5) Allotments and expenditures for itemized personnel 26 expenses. 27 (6) Allotments and expenditures for itemized operating 28 expenses. 29 (7) Allotments and expenditures for itemized fixed assets. 30 (8) The rate of expenditures in appropriations for major 20070H0261B2772 - 5 -
1 subsidy and grant programs during the month. 2 In addition to the above specified budgetary data, the Governor 3 shall make available any other budgetary data as may be 4 requested from time to time by the Majority and Minority 5 [Chairmen] Chairs of the Appropriations Committees of the Senate 6 and the House of Representatives. 7 (b) The Governor shall make monthly revenue reports to the 8 Majority and Minority [Chairmen] Chairs of the Appropriations 9 Committees of the Senate and the House of Representatives and 10 the Independent Fiscal Review Board. The revenue reports shall 11 show the actual collection of revenue itemized by source and a 12 comparison of the actual collections with estimated collections 13 for each month. The comparison shall be accompanied by an 14 analysis which would indicate any change in collection patterns 15 which will cause a shortfall or overrun on the annual estimates 16 of more than one per centum (1%). 17 (c) The Governor shall cause to be prepared any other 18 revenue data as may be requested from time to time by the 19 Majority or Minority [Chairmen] Chairs of the Appropriations 20 Committees of the Senate or the House of Representatives and to 21 the Chair of the Independent Fiscal Review Board. 22 Section 3. Section 620.1 of the act, added August 14, 1991 23 (P.L.331, No.35), is amended to read: 24 Section 620.1. Electronic Access [of] to Information.-- 25 Except for confidential information, the Majority and Minority 26 [Chairmen] Chairs of the Appropriations Committees of the Senate 27 and House of Representatives and the Chair of the Independent 28 Fiscal Review Board shall have access to all information 29 available on inquiry-only screens through the Integrated Central 30 System. 20070H0261B2772 - 6 -
1 Section 4. The act is amended by adding an article to read: 2 ARTICLE XXVIII-D 3 POWERS AND DUTIES OF THE INDEPENDENT FISCAL 4 REVIEW BOARD 5 Section 2801-D. Legislative purpose. 6 The General Assembly recognizes the continued need for public 7 services which ensure the economic and social well-being of 8 individuals and businesses in this Commonwealth. 9 (1) To that end, the General Assembly finds and declares 10 that the Commonwealth should establish an independent entity 11 to do all of the following: 12 (i) Recommend changes which will modernize and <-- 13 reform the Commonwealth and local revenue systems which 14 supports these public services. 15 (ii) Continually monitor this system. 16 (I) CONTINUALLY MONITOR THE STATE AND LOCAL REVENUE <-- 17 SYSTEM. 18 (iii) (II) Encourage discussion in a public forum of <-- 19 issues and concerns related to this system. 20 (iv) (III) Particularly focus on revenue forecasts <-- 21 and legislation affecting the General Fund. 22 (2) The General Assembly further recognizes that the 23 Commonwealth should establish an independent entity which is 24 composed of professionals who are experts in their fields and 25 who can encourage debate on whether the Commonwealth revenue 26 system equitably distributes the burden of payment, promotes 27 economic efficiency and growth, provides appropriate and 28 timely revenues, is easy to understand and easy to administer 29 and ensures accountability. 30 Section 2802-D. Definitions. 20070H0261B2772 - 7 -
1 The following words and phrases when used in this article 2 shall have the meanings given to them in this section unless the 3 context clearly indicates otherwise: 4 "Board." The Independent Fiscal Review Board established in 5 section 2803-D. 6 "Chairs of the Appropriations Committees." The Majority 7 Chair and the Minority Chair of the Appropriations Committee of 8 the Senate and the Majority Chair and the Minority Chair of the 9 Appropriations Committee of the House of Representatives. 10 "Council." The Economic Advisory Council established in 11 section 2809-D 2808-D. <-- 12 "Documented revenue forecast." General Fund revenue 13 estimates for the current and succeeding two fiscal years 14 accompanied by supporting documentation which is sufficient for 15 an individual to independently replicate and verify the 16 forecast. Supporting documentation includes: 17 (1) All reference and data sources used to prepare the 18 forecast. 19 (2) Economic growth assumptions accompanied with 20 supporting rationale. 21 (3) All historical and forecast data used, including the 22 effective rate of taxes. 23 (4) All adjustments to historical and forecast data 24 accompanied with supporting rationale. The rationale includes 25 a discussion of adjustments due to statutory changes, 26 litigation and administrative practices. 27 (5) All models used, including econometric, structural 28 and cash flow models. 29 (6) All formulas and calculations used to be accompanied 30 with supporting rationale. 20070H0261B2772 - 8 -
1 "General Fund revenue." The income sources for the General 2 Fund. 3 "Official estimate." The official estimate as required under 4 section 618(a) for General Fund revenue. 5 "Revenue system." The taxes levied by the various taxing 6 jurisdictions in this Commonwealth. 7 Section 2803-D. Board. 8 The Independent Fiscal Review Board is established as an 9 independent advisory board. 10 Section 2804-D. Purpose. 11 The board shall prepare periodic advisory General Fund 12 revenue estimates and reports; monitor Commonwealth and local 13 revenue systems; and act as an advisor to the Governor, the 14 General Assembly and the public concerning the following: 15 (1) General Fund revenue forecasts. 16 (2) Economic conditions in this Commonwealth. 17 (3) Trends and developments relevant to revenue systems 18 in this Commonwealth. 19 (4) Other information or analysis related to 20 Commonwealth and local revenue systems which the Governor or 21 the Chairs of the Appropriations Committees may request or as 22 may be required by law. 23 Section 2805-D. Membership. 24 (a) Members.-- 25 (1) The board shall consist of nine members. 26 (2) The Governor shall appoint one member, and each of 27 the Chairs of the Appropriations Committees shall appoint one 28 member. The appointments under this paragraph shall be made 29 within 30 days of the effective date of this section. 30 (3) The five members under paragraph (2) shall appoint 20070H0261B2772 - 9 -
1 four additional members to the board. The five board members 2 under paragraph (2) must unanimously approve each of the four 3 additional members. The members under this paragraph shall be 4 appointed within 60 days of the effective date of this 5 section. 6 (4) The board shall by a vote of six of the nine members 7 elect one of the four members under paragraph (3) to serve as 8 chair of the board. 9 (5) If a vacancy occurs on the board, the vacancy shall 10 be filled within 60 days. A successor shall be appointed by 11 the same appointing authority as the member being replaced. 12 (b) Requirements.-- 13 (1) Each member must be skilled and knowledgeable in tax 14 policy, and have at least five years' experience in public 15 finance, economics or accounting. At least three members must 16 have a minimum of five years' professional economic 17 forecasting experience. At least one member must have a 18 minimum of five years of corporate tax accounting experience. 19 (2) A member may not be a lobbyist, as defined in 65 20 Pa.C.S. § 13A03 (relating to definitions). 21 (3) A board member must not be an employee of the 22 executive, legislative or judicial branch of State 23 government. 24 (4) A member may not seek or hold a position as any 25 other public official within this Commonwealth or as a party 26 officer during the member's term. A member may not seek 27 election as a public official or party officer for one year 28 after service with the board. A member may serve as an 29 appointed public official any time after service with the 30 board. 20070H0261B2772 - 10 -
1 (c) Terms.-- 2 (1) Of the nine initial appointments, two shall be 3 appointed for a term of two years, three for a term of three 4 years and four for a term of four years. 5 (2) The chair of the board, whose initial term shall be 6 for four years, shall have the other appointees draw lots to 7 determine which length of initial term each of them shall 8 serve. 9 (3) After initial terms, each term shall be four years. 10 (4) An individual appointed to fill a vacancy shall 11 serve the unexpired term. 12 (5) A board member may be reappointed to serve 13 subsequent terms. 14 (6) If the chair becomes vacant, the board shall elect a 15 new chair as provided in subsection (a)(4). 16 (d) Meetings.-- 17 (1) The board shall meet as frequently as it deems 18 appropriate, but at least once during each quarter of the 19 fiscal year. 20 (2) The chair shall be responsible for calling meetings 21 of the board and shall set a date, time and place for 22 meetings. 23 (3) The member appointed by the Governor shall set a 24 date, time and place for the initial organizational meetings 25 of the board within ten days after the completion of the 26 initial five appointments and within ten days after the 27 completion of the remaining four appointments. 28 (4) The chair shall call a meeting of the board if a 29 request for such meeting is submitted to the chair by at 30 least three members of the board. 20070H0261B2772 - 11 -
1 (e) Procedure.-- 2 (1) The chair shall, when present, preside at the 3 meeting. In the chair's absence, a member designated by the 4 board shall preside. Actions of the chair are subject in 5 every case to majority approval of the board. 6 (2) Five members constitute a quorum. 7 (f) Reimbursement.--Members shall receive reimbursement for 8 actual and necessary expenses incurred while performing the 9 business of the board. 10 Section 2806-D. Powers and duties. 11 (a) Funds.--The board may expend appropriated funds 12 necessary to perform the function provided for in this article. 13 (b) Administration.-- 14 (1) The board shall hire an executive director to aid in 15 carrying out the powers and duties of the board. The chair 16 shall, upon the approval of a majority of the members, 17 delegate to the executive director powers the chair deems 18 necessary to carry out the purposes of the board, subject to 19 the supervision and control of the board. The initial 20 appointment of the executive director shall take place within 21 30 days after all initial appointments to the board. 22 (2) The executive director may not seek or hold a 23 position as any other public official within this 24 Commonwealth or as a party officer during service with the 25 board. The executive director may not seek election as a 26 public official or party officer for one year after service 27 with the board. The executive director may serve as an 28 appointed public official any time after service with the 29 board. 30 (3) The executive director shall hire support staff as 20070H0261B2772 - 12 -
1 necessary to carry out the functions of the board. The 2 initial chair of the board shall use the staff of the 3 Governor's Office as support staff until the executive 4 director has hired necessary support staff. 5 (c) Fiscal review.--The board shall conduct a comprehensive <-- 6 fiscal review and recommend a proposal, within 18 months of the 7 effective date of this section, to redesign and modernize 8 Commonwealth and local revenue systems as required under section 9 2807-D. The board shall carry out all of its powers and duties 10 imposed by this article by first addressing and completing its 11 duties with regard to the comprehensive fiscal review before 12 exercising any of its powers and duties with regard to 13 documented revenue forecasts, fiscal analysis and Commonwealth 14 and local revenue systems as provided in subsections (d) and 15 (e). 16 (d) (C) Revenue forecast.-- <-- 17 (1) The board shall prepare a documented revenue 18 forecast by April 30 and at any other time deemed necessary 19 by the board. 20 (2) The board shall analyze the documented revenue 21 forecasts which the Governor submits to the board as required 22 under section 2810-D 2809-D. The board shall ensure that the <-- 23 documented revenue forecasts are a matter of public record. 24 (3) The board shall analyze how its most recent General 25 Fund revenue forecast compares with the official estimate. 26 Part of the analysis shall include a comparison of the 27 documented revenue forecast with the monthly report of the 28 official estimate as required under section 620(b). The board 29 shall provide to the public a summary of information 30 presented in a manner which a lay person can understand. The 20070H0261B2772 - 13 -
1 board shall meet to approve information by a majority vote 2 before the information is released. Except as otherwise 3 provided, the board shall make information available in 4 printed form to the Governor, the Chairs of the 5 Appropriations Committees and the public by July 15, October 6 15, January 15, April 15 and June 15 and at any other time 7 that the board deems necessary. For purposes of this 8 paragraph, publication in the Pennsylvania Bulletin within 9 one week of the due date shall be sufficient to meet the 10 public reporting requirement. 11 (4) The board shall act in an advisory capacity and 12 shall develop policies and procedures for maintaining the 13 confidentiality of individual requests concerning General 14 Fund revenue forecasts, General Fund revenue proposals and 15 General Fund revenue analysis, upon the request of the 16 Governor or the Chairs of the Appropriations Committees. 17 (e) (D) Fiscal analysis.-- <-- 18 (1) The board shall prepare and issue a fiscal analysis 19 for any bill proposing to expand, alter or reduce General 20 Fund revenue and for any amendment to a bill proposing to 21 expand, alter or reduce General Fund revenue. The fiscal 22 analysis shall include policy effects and estimated revenue 23 impacts for the current fiscal year and for each of the two 24 succeeding fiscal years, including all reference and data 25 sources and an explanation of the methodology used to 26 estimate the revenue impacts. In preparing a fiscal analysis, 27 the board shall consider the evaluation criteria set forth in 28 section 2808-D 2807-D. <-- 29 (2) Except as provided in paragraph (3): 30 (i) no bill proposing to expand, alter or reduce 20070H0261B2772 - 14 -
1 General Fund revenue shall be given second consideration 2 in either chamber of the General Assembly until the board 3 has attached a fiscal analysis; and 4 (ii) no amendment to any bill which proposes 5 amendment to expand, alter or reduce General Fund revenue 6 shall be considered by either chamber of the General 7 Assembly until the board has attached a fiscal analysis. 8 (3) If the board fails to attach a fiscal analysis 9 within 20 legislative days after a bill proposing to expand, 10 alter or reduce General Fund revenue has received first 11 consideration, the bill may be further considered in the same 12 manner as if the fiscal analysis had been attached to the 13 bill. If the board fails to attach a fiscal analysis within 14 20 legislative days after an amendment to a bill proposing to 15 expand, alter or reduce General Fund revenue has been 16 submitted to the board, the amendment may be considered in 17 the same manner as if the fiscal analysis had been attached 18 to the amendment. 19 (f) (E) Evaluation.-- <-- 20 (1) The board shall periodically monitor and, using the 21 evaluation criteria set forth in section 2808-D 2807-D, <-- 22 evaluate the relationship of Commonwealth and local revenue 23 systems to fiscal policy in this Commonwealth and to changes 24 and developments in factors which impact the revenue systems. 25 Factors the board should consider include: 26 (i) General economic and demographic trends. 27 (ii) Patterns of business methods and organization. 28 (iii) Economic activity. 29 (iv) Federal and State legislative and 30 administrative actions. 20070H0261B2772 - 15 -
1 (v) Accounting standards. 2 (vi) Regulatory requirements. 3 (2) At its discretion or upon request of the Governor or 4 the General Assembly, the board shall evaluate the impact of 5 any factor on the revenue systems in this Commonwealth and 6 recommend any revisions to policy that it deems advisable. 7 Section 2807-D. Comprehensive fiscal review. <-- 8 (a) Purpose.--The purpose of the comprehensive fiscal review 9 is to address the structural problems in the existing revenue 10 systems in this Commonwealth and, in turn, to develop a 11 consensus proposal for making Commonwealth and local revenue 12 systems straightforward, fair, efficient and reliable for 13 funding the public programs and services provided in this 14 Commonwealth. It is the intent of the General Assembly that the 15 proposal not result in excess revenues. 16 (b) Review.--Within three months of the effective date of 17 this section, the board shall commence a review of the entire 18 structure of Commonwealth and local revenue systems. Using the 19 evaluation criteria set forth in section 2808-D, the board shall 20 make a comprehensive assessment of the revenue systems in this 21 Commonwealth and recommend a proposal to redesign and modernize 22 such systems. 23 (c) Final report.--No later than 16 months after the 24 effective date of this section, the board shall issue to the 25 Governor and the General Assembly a final report containing its 26 evaluation of the Commonwealth and local revenue systems and 27 recommended proposal for improving the systems, including 28 supporting analysis, such as rationale and fiscal analyses. 29 Within 90 days of issuing the report, the board shall submit 30 suggested statutory language for implementing its 20070H0261B2772 - 16 -
1 recommendations. 2 (d) Publication.--Within 105 days of issuing the report 3 required by subsection (b), the board shall publish in the 4 Pennsylvania Bulletin all of the following: 5 (1) A brief summary of the report. 6 (2) A notice of availability of the text of the report, 7 the statutory language for implementing the recommendations 8 set forth in the report and a fiscal analysis relating to the 9 recommendations. 10 (3) A request for written comments. 11 Section 2808-D 2807-D. Evaluation criteria. <-- 12 In carrying out its powers and duties under this article, the 13 board shall take into consideration all of the following: 14 (1) The simplicity of the taxes and the ability of 15 individual taxpayers to easily understand and comply with 16 them. 17 (2) The overall mix of taxes. 18 (3) Whether the tax burden is distributed fairly among 19 taxpayers in terms of ability to pay and the relationship 20 between benefits received and payments made. 21 (4) The need to eliminate subjective interpretation of 22 taxes. 23 (5) The reliability of taxes and whether their bases 24 yield automatic growth and cyclical stability in revenues 25 generated. 26 (6) The collection and enforcement costs associated with 27 the various taxes and the ability to easily administer the 28 taxes. 29 (7) Whether the taxes create incentives for individuals 30 and firms to alter their behavior in order to minimize their 20070H0261B2772 - 17 -
1 tax burden. 2 (8) The system of taxation within various jurisdictions 3 and the incentives for households to move and firms to 4 relocate activities to jurisdictions which provide more 5 favorable tax treatment. 6 (9) The value of tax incentives and whether they meet 7 the performance requirements on which they are based. 8 (10) The responsiveness of revenue systems to economic 9 and social conditions, including the following: 10 (i) Changes in the economic base, such as the shift 11 from manufacturing to services. 12 (ii) Changes in the types and forms of business 13 organizations, such as the formation of S corporations 14 and limited liability companies. 15 (iii) Expansion of interstate and international 16 businesses and transactions, which impacts nexus 17 requirements, apportionment methods and methods of 18 reporting, including combined or separate company 19 reporting. 20 (iv) Changes in technology and regulations, such as 21 in telecommunications and financial services. 22 (v) Goals of Commonwealth economic development 23 policy, such as targeted job creation and public 24 investments. 25 Section 2809-D 2808-D. Economic Advisory Council. <-- 26 (a) Establishment.--The Economic Advisory Council is 27 established to act in an advisory capacity to the board 28 concerning Commonwealth and local revenue systems, economic 29 conditions in this Commonwealth and General Fund revenue 30 forecasts, whenever the board calls upon it. The council shall 20070H0261B2772 - 18 -
1 meet with the board at least once during each quarter of the 2 fiscal year. 3 (b) Membership.-- 4 (1) The council shall consist of at least seven members. 5 (2) The council shall consist of a representative from 6 each of the following sectors: labor, manufacturing, banking, 7 nonbanking financial services, retail and public utilities. 8 (3) The board shall appoint each member for a two-year 9 term based upon a majority vote. 10 (4) If a vacancy occurs on the council, the vacancy 11 shall be filled within 60 days. An individual appointed to 12 fill a vacancy shall serve the unexpired term. 13 (c) Other offices.--A member may not seek or hold a position 14 as any other public official within this Commonwealth or as a 15 party officer while serving on the council. A member may not 16 seek election as a public official or party officer for one year 17 after service with the council. A member may serve as an 18 appointed public official any time after service with the 19 council. A member may not be a lobbyist, as defined in 65 20 Pa.C.S. § 13A03 (relating to definitions). A member may not be 21 an employee of the executive, legislative or judicial branch of 22 State government. 23 Section 2810-D 2809-D. Duties of the Governor and Cabinet <-- 24 officers. 25 (a) Revenue forecast.--The Governor shall submit to the 26 board a documented revenue forecast with the submission of the 27 Executive Budget as required under section 613 and with the 28 official estimate. 29 (b) Confidentiality.--Notwithstanding any statute or 30 regulation regarding confidential information to the contrary, 20070H0261B2772 - 19 -
1 the Secretary of the Budget and the Secretary of Revenue shall 2 provide information which the board requests for purposes of 3 fulfilling its duties under this article. The board shall be 4 bound by the same statutes and regulations regarding 5 confidentiality as the person that provides the confidential 6 information to the board. 7 (c) Information and reports.--In order to facilitate the 8 board's carrying out its powers and duties under section 2806- <-- 9 D(d) 2806-D(C), the Secretary of the Budget and Secretary of <-- 10 Revenue shall make available to the board all information and 11 reports used for generating General Fund revenue forecasts. 12 Section 5. This act shall take effect immediately JULY 1, <-- 13 2011. A10L71VDL/20070H0261B2772 - 20 -