PRIOR PRINTER'S NO. 223 PRINTER'S NO. 1346
No. 197 Session of 1989
INTRODUCED BY LEVDANSKY, MANDERINO, TRELLO, RYAN, O'DONNELL,
HAYES, PIEVSKY, RAYMOND, ITKIN, FREEMAN, GANNON, COWELL,
BUNT, VEON, LASHINGER, RITTER, KUKOVICH, CESSAR, MICHLOVIC,
KENNEY, FOSTER, MURPHY, VAN HORNE, J. TAYLOR, GAMBLE, GEIST,
DeLUCA, LANGTRY, JOSEPHS, McVERRY, COHEN, FARGO, FOX,
D. W. SNYDER, BELFANTI, ARGALL, McHALE, CHADWICK,
D. R. WRIGHT, NAHILL, BORTNER, REINARD, McCALL, BOYES,
DeWEESE, SCHEETZ, CAPPABIANCA, GODSHALL, WOGAN, MRKONIC,
KOSINSKI, COLE, OLIVER, BELARDI, TIGUE, BLAUM, B. SMITH,
PISTELLA, MAYERNIK, GRUITZA, HAGARTY, B. D. CLARK, MAINE,
FLICK, KASUNIC, COLAFELLA, SEMMEL, RICHARDSON, GRUPPO,
HUGHES, LaGROTTA, BLACK, PRESTON, JADLOWIEC, FEE, MOEHLMANN,
GEORGE, CAWLEY, WOZNIAK, LINTON, PRESSMANN, HERSHEY, PETRONE,
CARN, HAYDEN, LUCYK, BATTISTO, BROUJOS, CALTAGIRONE, PITTS,
MARKOSEK, HERMAN, DOMBROWSKI, RYBAK, DEMPSEY, LETTERMAN,
E. Z. TAYLOR, GIGLIOTTI, MORRIS, MICOZZIE, J. H. CLARK, HESS
AND TRICH, FEBRUARY 1, 1989
AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
REPRESENTATIVES, AS AMENDED, APRIL 17, 1989
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
1 assistants and employes of certain departments, boards and
2 commissions shall be determined," providing for the
3 submission to the General Assembly of information relating to
4 tax expenditures.
5 It is the intent of this act to provide a mechanism which
6 will enable the General Assembly to better determine those
7 programs, activities and groups which are receiving public
8 support subsidies as a result of tax expenditures. The General
9 Assembly recognizes that the present budgeting system fails to
10 accurately and totally reflect the true level of budgetary
11 support for such programs due to such tax expenditures and that,
12 as a result, undetermined amounts of indirect expenditures are
13 escaping public or legislative scrutiny. The loss of potential
14 revenue also causes a narrowing of tax bases which in turn
15 forces higher tax rates on the remaining taxpayers.
16 The General Assembly of the Commonwealth of Pennsylvania
17 hereby enacts as follows:
18 Section 1. The act of April 9, 1929 (P.L.177, No.175), known
19 as The Administrative Code of 1929, is amended by adding
20 sections to read:
21 Section 622. Tax Expenditures.--(a) As used in this section
22 "tax expenditure" shall mean a reduction in revenue that would
23 otherwise be collected by the Commonwealth as the result of an
24 exemption, reduction, deduction, limitation, exclusion, tax
25 deferral, discount, refund, commission, credit, preferential
26 rate or preferential treatment. "Tax expenditure" shall include,
27 but not be limited to, the following:
28 (1) Sales tax imposed by Article II of the act of March 4,
29 1971 (P.L.6, No.2), known as the "Tax Reform Code of 1971":
30 (i) The exclusions itemized in section 204, each of which
31 shall be considered a separate tax expenditure.
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1 (ii) The exclusions described by section 201(c)(1) through
2 (5), (c.1) and (d)(1) through (12), each of which may be
3 combined with the related exclusion described in section 201(o)
4 and shall be considered a separate tax expenditure.
5 (iii) The exclusion described by section 201(k)(8)(A) and
6 (o)(4)(B)(i).
7 (iv) The exclusion described by section 201(k)(8)(B) and
8 (o)(4)(B)(ii).
9 (v) The exclusion described by section 201(k)(8)(C) and
10 (o)(4)(B)(iii).
11 (vi) The exclusion described by section 201(k)(8)(D) and
12 (o)(4)(B)(iv).
13 (vii) The deduction described in section 201(g)(2).
14 (viii) The reduction authorized in section 201(g)(5).
15 (ix) The exclusions described in section 201(i)(1) through
16 (5), each of which shall be considered a separate tax
17 expenditure.
18 (x) The exclusion of household supplies described in section
19 201(m).
20 (xi) The exclusions of residential utility services itemized
21 in section 201(m), each of which shall be considered a separate
22 tax expenditure.
23 (xii) The exclusion of wearing apparel and shoes as
24 described in section 201(k)(4) and (o)(4).
25 (xiii) The exclusion described in section 201(o)(8).
26 (xiv) The reduction afforded by the computation provided for
27 in section 202(d) as opposed to the tax that would be due
28 computing it as required by section 203.
29 (xv) The reduction authorized in section 205(a).
30 (xvi) The reduction authorized in section 205(b).
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1 (xvii) The credit authorized in section 206.
2 (xviii) The exclusions itemized in 61 Pa. Code § 31.6(a)
3 (relating to persons rendering nontaxable services), each of
4 which shall be considered a separate tax expenditure.
5 (xix) The exclusion of "permanent residents" from the tax
6 imposed by section 210.
7 (xx) The discount authorized by section 227.
8 (xxi) Refunds resulting from petitions filed pursuant to
9 section 253(d).
10 (xxii) Nontaxation of the following items shall be
11 considered tax expenditures:
12 (A) Country club memberships.
13 (B) Services of stenographers and reporters.
14 (C) Accounting, auditing and bookkeeping services.
15 (D) Cable TV rental.
16 (E) Barbers', beauticians' and manicurists' services.
17 (F) Exterminators' services.
18 (G) Janitorial services.
19 (H) Computer and data processing services.
20 (I) Legal services.
21 (J) Services of abstractors, surveyors and architects.
22 (K) Engineering services.
23 (L) Doctors', dentists' and veterinary services.
24 (M) Stockbrokers' services.
25 (N) Real estate agents' services.
26 (O) Insurance agents' services.
27 (P) Services of financial institutions.
28 (Q) Advertising services.
29 (R) Consulting and management services.
30 (S) Research and public relation services.
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1 (T) Collection agencies.
2 (U) Detective agencies.
3 (V) Parking lots and parking structures.
4 (W) Entertainers and entertainment groups.
5 (X) Admissions to places of amusement.
6 (Y) Chartered flights and pilots' services.
7 (Z) Campsite and trailer park rental.
8 (AA) Funeral and mortuary services.
9 (BB) Storage charges.
10 (CC) Services of electricians, plumbers and heating and air
11 conditioning contractors.
12 (DD) Other services.
13 (2) Personal income tax imposed by Article III of the "Tax
14 Reform Code of 1971":
15 (i) Each exclusion itemized in section 301(d)(i) through
16 (vii).
17 (ii) Expenses allowed as a deduction against compensation
18 income pursuant to Article III.
19 (iii) Expenses other than depreciation allowed as a
20 deduction against net profits income pursuant to Article III.
21 (iv) Depreciation expenses allowed as a deduction against
22 net profits income pursuant to Article III.
23 (v) The exclusion from "net gains or income" of certain
24 gains on the sale of a principal residence by taxpayers fifty-
25 five years of age or older.
26 (vi) The exclusion from "net gains or income" of gains or
27 income derived from obligations statutorily free from tax under
28 acts of the General Assembly.
29 (vii) The exclusion from "net gains or income" of gains or
30 income derived from obligations statutorily free from tax under
19890H0197B1346 - 5 -
1 the laws of the United States.
2 (viii) The exclusion from interest income of interest
3 statutorily free from tax under acts of the General Assembly.
4 (ix) The exclusion from interest income of interest
5 statutorily free from tax under acts of the United States.
6 (x) The exclusion from income of noncombat military pay.
7 (xi) The exclusion from income of scholarships, grants,
8 fellowships and stipends.
9 (xii) The preferential rate authorized pursuant to section
10 304.
11 (xiii) The credit authorized pursuant to section 314.
12 (xiv) Tax credits taken against the personal income tax
13 pursuant to Article XVII-A.
14 (3) Corporate Net Income Tax imposed by Article IV of the
15 "Tax Reform Code of 1971":
16 (i) Deductions allowed pursuant to section 401(3)1(b).
17 (ii) Deductions allowed pursuant to section 401(3)1(c).
18 (iii) Each of the deductions allowed pursuant to section
19 401(3)1(d)(i) through (ix) shall be considered a separate tax
20 expenditure.
21 (iv) Deductions allowed pursuant to section 401(3)1(h).
22 (v) Deductions allowed pursuant to section 401(3)1(i).
23 (vi) Deductions allowed pursuant to section 401(3)4.
24 (vii) Tax credits taken against the Corporate Net Income Tax
25 pursuant to the act of November 29, 1967 (P.L.636, No.292),
26 known as the "Neighborhood Assistance Act."
27 (viii) Tax credits taken against the Corporate Net Income
28 Tax pursuant to Article XVII-A.
29 (ix) Exclusion of value or income from taxation as a result
30 of the application of the multiform concept.
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1 (x) The exclusion of each of the classes of corporations
2 excluded from the definition in section 401(1).
3 (4) Capital Stock/Franchise Tax imposed by Article IV of the
4 "Tax Reform Code of 1971":
5 (i) Tax relief resulting from the exemption of capital stock
6 invested in a manufacturing, processing, research or development
7 plant and business pursuant to section 602.
8 (ii) The preferential calculation afforded to holding
9 companies pursuant to section 602(e).
10 (iii) The preferential calculation afforded to regulated
11 investment companies pursuant to section 602(f).
12 (iv) The exemption of pollution control devices pursuant to
13 section 602.1.
14 (v) The exemption of family farm corporations pursuant to
15 section 602.2.
16 (vi) Tax credits against the Capital Stock/Franchise Tax
17 pursuant to the "Neighborhood Assistance Act."
18 (5) Bank Shares Tax imposed by Article VII of the "Tax
19 Reform Code of 1971":
20 (i) The personal property tax exemption granted to banks
21 which collect the Bank Shares Tax from their shareholders on
22 behalf of the Commonwealth as authorized in section 701.
23 (ii) The exclusion of United States obligations from the tax
24 as described in section 701.1.
25 (iii) Tax credits against this tax pursuant to the
26 Neighborhood Assistance Act.
27 (iv) Tax credits against this tax pursuant to Article XVII-
28 A.
29 (6) Title Insurance and Trust Companies Share Tax imposed by
30 Article VIII of the "Tax Reform Code of 1971":
19890H0197B1346 - 7 -
1 (i) The exemption from the Corporate Net Income Tax and
2 Capital Stock/Franchise Tax granted to companies paying this tax
3 as authorized in section 801.
4 (ii) The exclusion of United States obligations from tax as
5 described in section 801.1.
6 (iii) Tax credits against this tax pursuant to the
7 "Neighborhood Assistance Act."
8 (iv) Tax credits against this tax pursuant to Article XVII-
9 A.
10 (7) Insurance Premiums Tax imposed by Article IX of the "Tax
11 Reform Code of 1971":
12 (i) The exemption granted in section 901(1) to mutual
13 beneficial associations.
14 (ii) The exemptions granted in section 901(1) to
15 corporations organized under the act of June 21, 1937 (P.L.1948,
16 No.378), known as the "Nonprofit Hospital Plan Act," and the act
17 of June 27, 1939 (P.L.1125, No.399), known as the "Nonprofit
18 Medical, Osteopathic, Dental and Podiatry Service Corporation
19 Act."
20 (iii) Tax credits against this tax pursuant to the
21 "Neighborhood Assistance Act."
22 (iv) Tax credits against this tax pursuant to Article XVII-
23 A.
24 (8) Utility Gross Receipts Tax imposed by Article XI of the
25 "Tax Reform Code of 1971":
26 (i) The exemption of sales inside the limits of a
27 municipality owning or operating a public utility pursuant to
28 section 1101(f).
29 (ii) The exemption of certain receipts pursuant to section
30 1101(g).
19890H0197B1346 - 8 -
1 (iii) Tax credits granted pursuant to section 1101.2.
2 (9) Liquid Fuels and Fuel Use Taxes:
3 (i) The exemptions itemized in section 1101-B of the "Tax
4 Reform Code of 1971" and applied against taxes collected
5 pursuant to Article XI-B of the "Tax Reform Code of 1971," the
6 act of May 21, 1931 (P.L.149, No.105), known as "The Liquid
7 Fuels Tax Act," the act of July 12, 1974 (P.L.458, No.161),
8 entitled "An act imposing an additional State tax on certain
9 fuels; providing for collection, lien and administration of the
10 tax; and making an appropriation," the act of January 14, 1952
11 (1951 P.L.1965, No.550), known as the "Fuel Use Tax Act," and
12 Chapter 95 of Title 75 of the Pennsylvania Consolidated Statutes
13 (relating to taxes for highway maintenance and construction).
14 (10) Realty Transfer Tax imposed by Article XI-C of the "Tax
15 Reform Code of 1971":
16 (i) Each of the exemptions listed within section 1102-C.3.
17 (11) Cigarette Tax imposed by Article XII of the "Tax Reform
18 Code of 1971":
19 (i) Each of the exemptions itemized in section 1209(a).
20 (ii) The commission authorized pursuant to section 1216.
21 (12) Mutual Thrift Institutions Tax imposed by Article XV of
22 the "Tax Reform Code of 1971":
23 (i) The personal property tax exemption granted by section
24 1502(e).
25 (ii) The net operating loss carryover authorized by section
26 1502(d).
27 (iii) Tax credits taken against this tax pursuant to the
28 "Neighborhood Assistance Act."
29 (iv) Tax credits taken against this tax pursuant to Article
30 XVII-A.
19890H0197B1346 - 9 -
1 (13) Oil Company Franchise Tax imposed by Chapter 95 of
2 Title 75 of the Pennsylvania Consolidated Statutes:
3 (i) The exclusion from the definition of "petroleum
4 products" in section 9501 of Title 75 of the Pennsylvania
5 Consolidated Statutes (relating to definitions) of products not
6 used for the generation of power to propel motor vehicles on the
7 public highways.
8 (14) Motor Carriers Road Tax imposed by Chapter 96 of Title
9 75 of the Pennsylvania Consolidated Statutes (relating to motor
10 carriers road tax):
11 (i) The exemptions itemized in section 9910 (relating to
12 exemptions from tax).
13 (15) Inheritance Tax imposed by Chapter 17 of Title 72 of
14 the Pennsylvania Consolidated Statutes (relating to inheritance
15 and estate taxes):
16 (i) The exception provided in section 1708(b) (relating to
17 joint tenancy).
18 (ii) Each of the exemptions enumerated in section 1711(b)
19 through (r) (relating to transfers not subject to tax).
20 (iii) The preferential valuation described in section
21 1722(b) (relating to valuation of certain farmland).
22 (iv) The deductions authorized pursuant to section 1727
23 (relating to expenses).
24 (v) Interest abatements as a result of the extended payment
25 schedule authorized in section 1754(a) (relating to payment of
26 tax for small business transfers).
27 (16) Unemployment Compensation Contributions imposed by the
28 act of December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1),
29 known as the "Unemployment Compensation Law":
30 (i) The limitation on the taxable wage base provided for in
19890H0197B1346 - 10 -
1 section 4(x)(1).
2 (17) Utility Realty Tax imposed by Article XI-A of the "Tax
3 Reform Code of 1971":
4 (i) Each of the exemptions enumerated in the definition of
5 "utility realty" in section 1101-A.
6 (ii) The exemptions granted in section 1102-A(d).
7 (18) Gross Receipts Tax on Motor Carriers imposed by the act
8 of June 22, 1931 (P.L.694, No.255), referred to as the Motor
9 Carriers Gross Receipts Tax Act:
10 (i) The preferential rate at which this tax is imposed
11 relative to other utility gross receipts taxed pursuant to
12 Article XI of the "Tax Reform Code of 1971."
13 (ii) The deduction authorized in section 3 for excise taxes
14 paid to local governments.
15 (iii) The credit authorized in section 3 for registration
16 fees paid to the Commonwealth.
17 (19) Marine Insurance Underwriting Profits Tax imposed by
18 the act of May 13, 1927 (P.L.998, No.486), entitled "An act
19 imposing a tax for State purposes on marine insurance
20 underwriting profits, and providing for the collection of such
21 tax":
22 (i) The preferential treatment afforded by taxing marine
23 insurers as required in this act rather than at the rate and in
24 the manner prescribed in Article IX of the "Tax Reform Code of
25 1971."
26 (20) Co-operative Agricultural Association Corporate Net
27 Income Tax imposed pursuant to the act of May 23, 1945 (P.L.893,
28 No.360), known as the "Co-operative Agricultural Association
29 Corporate Net Income Tax Act":
30 (i) The preferential treatment afforded by taxing Co-
19890H0197B1346 - 11 -
1 operative Agricultural Associations on the base and at the rate
2 required in the Co-operative Agricultural Association Corporate
3 Net Income Tax Act rather than on the base and at the rate
4 prescribed by Article IV of the "Tax Reform Code of 1971."
5 (ii) Other exclusions from State taxes authorized pursuant
6 to section 3.
7 (iii) Exclusions from county taxes authorized pursuant to
8 section 3.
9 (21) Electric Co-operative Corporation Tax imposed by the
10 act of June 21, 1937 (P.L.1969, No.389), known as the "Electric
11 Cooperative Corporation Act":
12 (i) The exemption from all other State taxes granted in
13 section 31.
14 (22) Malt Beverage Tax imposed by the act of May 5, 1933
15 (P.L.284, No.104), known as the "Malt Beverage Tax Law":
16 (i) The tax credit provided by section 10.1.
17 (23) Spirituous and Vinous Liquors Tax imposed by the act of
18 December 5, 1933 (Sp.Sess., P.L.38, No.6), known as the
19 "Spirituous and Vinous Liquor Tax Law":
20 (i) The exception granted in section 19.
21 (ii) Refunds available pursuant to section 21.
22 (24) Property Taxes:
23 (i) The reduction in tax resulting from assessment pursuant
24 to the act of December 19, 1974 (P.L.973, No.319), known as the
25 "Pennsylvania Farmland and Forest Land Assessment Act of 1974."
26 (ii) The exemption from tax required by section 2(c) of
27 Article VIII of the Constitution of Pennsylvania.
28 (iii) The exemptions granted pursuant to section 204 of the
29 act of May 22, 1933 (P.L.853, No.155), known as "The General
30 County Assessment Law," and section 202 of the act of May 21,
19890H0197B1346 - 12 -
1 1943 (P.L.571, No.254), known as "The Fourth to Eighth Class
2 County Assessment Law."
3 (iv) The exemption granted pursuant to section 11 of the act
4 of July 7, 1947 (P.L.1414, No.549), known as the "Veterans'
5 Housing Authority Act."
6 (25) Vehicle registration fees imposed pursuant to Title 75
7 of the Pennsylvania Consolidated Statutes (relating to
8 vehicles):
9 (i) The exemptions granted pursuant to section 1302(2), (3),
10 (9), (10), (11), (12), (14) and (16) (relating to vehicles
11 exempt from registration).
12 (ii) The exemption and preferential fees authorized pursuant
13 to section 1901 (relating to exemption of entities and vehicles
14 from fees), each of which shall constitute a tax expenditure.
15 (26) General exemptions:
16 (i) The exemptions granted pursuant to section 15 of the act
17 of March 31, 1949 (P.L.372, No.34), known as "The General State
18 Authority Act of one thousand nine hundred forty-nine."
19 (ii) The exemption granted pursuant to section 6307(b)
20 (relating to exemptions applicable to certificated professional
21 health care service corporations) of Title 40 of the
22 Pennsylvania Consolidated Statutes.
23 (iii) The exemptions granted pursuant to section 23 of the
24 act of May 28, 1937 (P.L.955, No.265), known as the "Housing
25 Authorities Law."
26 (iv) The exemptions granted pursuant to section 15 of the
27 act of May 2, 1945 (P.L.382, No.164), known as the "Municipality
28 Authorities Act of 1945."
29 (v) The exemptions granted pursuant to section 15 of the act
30 of June 5, 1947 (P.L.458, No.208), known as the "Parking
19890H0197B1346 - 13 -
1 Authority Law."
2 (vi) The exemptions granted pursuant to section 17 of the
3 act of April 18, 1949 (P.L.604, No.128), known as the "State
4 Highway and Bridge Authority Act."
5 (vii) The exemptions granted pursuant to section 14 of the
6 act of July 5, 1947 (P.L.1217, No.498), known as the "State
7 Public School Building Authority Act."
8 (27) Statutory exemptions, reductions, deductions,
9 limitations, exclusions, tax deferrals, discounts, refunds,
10 commissions, credits, preferential rates or preferential
11 treatments established after the effective date of this section.
12 (b) At the time required for the submission of the budget to
13 the General Assembly under section 613, the Governor shall also
14 submit to the General Assembly a tax expenditure plan for not
15 less than the prior fiscal year, the current fiscal year, this
16 budget year and the four (4) succeeding fiscal years, which plan
17 shall include the following information:
18 (1) The actual or estimated revenue loss to the Commonwealth
19 caused by each tax expenditure in each fiscal year covered by
20 the plan.
21 (2) The actual or estimated cost of administering and
22 implementing each tax expenditure for each fiscal year covered
23 by the plan.
24 (3) The actual or estimated number and description, in
25 reasonable detail, of taxpayers benefiting from each tax
26 expenditure in each fiscal year covered by the plan.
27 (4) The purpose of each tax expenditure in terms of desired
28 accomplishments.
29 (5) Measures used to determine whether tax expenditures are
30 achieving their purpose and actual or estimated levels of
19890H0197B1346 - 14 -
1 attainment.
2 (6) Which, if any, direct expenditure programs of the
3 Commonwealth are enhanced or complemented by each tax
4 expenditure.
5 (7) An assessment of each tax expenditure based on whether
6 or not each tax expenditure has been successful in meeting the
7 purpose for which it was enacted, and on whether each tax
8 expenditure is the most fiscally effective means of achieving
9 its purpose.
10 (c) Contents of the tax expenditure plan shall be as
11 follows:
12 (1) For the first fiscal year in which a tax expenditure
13 plan is required, the plan need only provide the required
14 information for tax expenditures itemized in subsection (a)(1),
15 (5), (6), (7), (12), (16) and (19).
16 (2) For the second year in which a tax expenditure plan is
17 required, the plan need only provide the required information
18 for the tax expenditures itemized in subsection (a)(1), (3),
19 (4), (5), (6), (7), (8), (12), (16), (17), (19), (20) and (21).
20 (3) For the third year in which a tax expenditure plan is
21 required, the plan need only provide the required information
22 for the tax expenditures itemized in subsection (a)(1), (2),
23 (3), (4), (5), (6), (7), (8), (9), (12), (13), (14), (16), (17),
24 (18), (19), (20), (21) and (25).
25 (4) For the fourth year in which a tax expenditure plan is
26 required, the plan shall provide the required information for
27 all tax expenditures itemized in subsection (a).
28 (d) The Secretary of the Budget may obtain the information
29 required for compliance with this section from all State
30 agencies in like manner as provided for budget information under
19890H0197B1346 - 15 -
1 this article.
2 (e) The Secretary of the Budget is hereby authorized to
3 obtain such data as may be needed for compliance with this
4 section from the appropriate local government officials.
5 (f) The General Assembly recognizes that the exemption from
6 taxation accorded religious institutions is founded on
7 principles of church-state separation, and nothing in this
8 section is intended to express or imply that tax exemption
9 constitutes subsidization of the religious activities of such
10 institutions; nor shall this section be construed to authorize
11 the imposition of any additional requirements on such
12 institutions relating to tax exemption.
13 Section 623. Cost Reduction Team.--(a) The Governor shall
14 form a cost reduction team within the executive branch which
15 shall conduct:
16 (1) A thorough study A REVIEW of the organization and <--
17 operation of each executive department AGENCIES IN THE EXECUTIVE <--
18 BRANCH for the purpose of recommending and implementing, through
19 executive action, methods and means of limiting expenditures
20 during each fiscal year. <--
21 (2) A thorough review of executive branch spending practices
22 in an effort to control the rate of taxation and the cost of
23 State government.
24 (b) No later than the date each year on which the Governor
25 presents his budget to the General Assembly, he shall submit a
26 report to the General Assembly indicating cost reduction
27 measures that can be HAVE BEEN OR WILL BE implemented by the <--
28 executive branch for the ensuing fiscal year. <--
29 Section 2. This act shall apply to the budget submitted for
30 the fiscal year next commencing after one year from the
19890H0197B1346 - 16 -
1 effective date of this act and to each fiscal year thereafter.
2 Section 3. This act shall take effect immediately.
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