PRIOR PRINTER'S NOS. 2872, 2886 PRINTER'S NO. 3037
No. 2082 Session of 2005
INTRODUCED BY ALLEN, DALLY, SAYLOR PETRARCA, ZUG, TRUE AND
FEESE, OCTOBER 19, 2005
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
NOVEMBER 1, 2005
AN ACT
1 Establishing appropriations limitations; and providing for the <--
2 disposition of surplus funds.
3 AMENDING THE ACT OF APRIL 9, 1929 (P.L.343, NO.176), ENTITLED, <--
4 AS AMENDED, "AN ACT RELATING TO THE FINANCES OF THE STATE
5 GOVERNMENT; PROVIDING FOR THE SETTLEMENT, ASSESSMENT,
6 COLLECTION, AND LIEN OF TAXES, BONUS, AND ALL OTHER ACCOUNTS
7 DUE THE COMMONWEALTH, THE COLLECTION AND RECOVERY OF FEES AND
8 OTHER MONEY OR PROPERTY DUE OR BELONGING TO THE COMMONWEALTH,
9 OR ANY AGENCY THEREOF, INCLUDING ESCHEATED PROPERTY AND THE
10 PROCEEDS OF ITS SALE, THE CUSTODY AND DISBURSEMENT OR OTHER
11 DISPOSITION OF FUNDS AND SECURITIES BELONGING TO OR IN THE
12 POSSESSION OF THE COMMONWEALTH, AND THE SETTLEMENT OF CLAIMS
13 AGAINST THE COMMONWEALTH, THE RESETTLEMENT OF ACCOUNTS AND
14 APPEALS TO THE COURTS, REFUNDS OF MONEYS ERRONEOUSLY PAID TO
15 THE COMMONWEALTH, AUDITING THE ACCOUNTS OF THE COMMONWEALTH
16 AND ALL AGENCIES THEREOF, OF ALL PUBLIC OFFICERS COLLECTING
17 MONEYS PAYABLE TO THE COMMONWEALTH, OR ANY AGENCY THEREOF,
18 AND ALL RECEIPTS OF APPROPRIATIONS FROM THE COMMONWEALTH,
19 AUTHORIZING THE COMMONWEALTH TO ISSUE TAX ANTICIPATION NOTES
20 TO DEFRAY CURRENT EXPENSES, IMPLEMENTING THE PROVISIONS OF
21 SECTION 7(A) OF ARTICLE VIII OF THE CONSTITUTION OF
22 PENNSYLVANIA AUTHORIZING AND RESTRICTING THE INCURRING OF
23 CERTAIN DEBT AND IMPOSING PENALTIES; AFFECTING EVERY
24 DEPARTMENT, BOARD, COMMISSION, AND OFFICER OF THE STATE
25 GOVERNMENT, EVERY POLITICAL SUBDIVISION OF THE STATE, AND
26 CERTAIN OFFICERS OF SUCH SUBDIVISIONS, EVERY PERSON,
27 ASSOCIATION, AND CORPORATION REQUIRED TO PAY, ASSESS, OR
28 COLLECT TAXES, OR TO MAKE RETURNS OR REPORTS UNDER THE LAWS
29 IMPOSING TAXES FOR STATE PURPOSES, OR TO PAY LICENSE FEES OR
30 OTHER MONEYS TO THE COMMONWEALTH, OR ANY AGENCY THEREOF,
31 EVERY STATE DEPOSITORY AND EVERY DEBTOR OR CREDITOR OF THE
1 COMMONWEALTH," ESTABLISHING APPROPRIATIONS LIMITATIONS; AND
2 PROVIDING FOR THE DISPOSITION OF SURPLUS FUNDS.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Short title. <--
6 This act shall be known and may be cited as the
7 Appropriations Limitations Act.
8 Section 2. Limitations on appropriations.
9 (a) General rule.--Except as set forth in subsection (b), in
10 any fiscal year, the General Assembly shall not increase total
11 General Fund State appropriations above the amount of total
12 General Fund State appropriations authorized for the preceding
13 fiscal year by a percentage which exceeds the average percentage
14 increase over the immediately preceding three calendar years in
15 the Consumer Price Index for All Urban Consumers of the Bureau
16 of Labor Statistics unless a referendum stating the amount and
17 duration of the increase is approved by a majority of the
18 electors voting on the referendum.
19 (b) Exception.--Subsection (a) shall not apply to any of the
20 following:
21 (1) An appropriation which, as a result of a requirement
22 of Federal law, is made for a new program or service or for
23 an increase in the level of service for an existing program
24 beyond the existing level of service.
25 (2) An appropriation which, as a result of a requirement
26 of a Federal or State court order which has become final, is
27 made for a new program or service or for an increase in the
28 level of service for an existing program beyond the existing
29 level of service.
30 (3) An appropriation providing for the Commonwealth's
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1 share of payments for pension obligations as provided by law.
2 (4) An appropriation for the repayment of interest and
3 principal for all debt incurred by or on behalf of the
4 Commonwealth.
5 (5) An appropriation in response to a Presidential or
6 gubernatorial declaration of an emergency or major disaster
7 in any part of this Commonwealth and which is approved by
8 three-fifths of the members elected to each House of the
9 General Assembly.
10 Section 3. Refund of surplus operating funds.
11 Surplus operating funds in the General Fund at the end of the
12 fiscal year which are not required by law to be deposited into
13 the Budget Stabilization Reserve Fund shall be refunded pro rata
14 to the citizens of this Commonwealth based on the liability
15 reported on annual returns filed pursuant to section 330 of the
16 act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code
17 of 1971, within the fiscal year in which the surplus was
18 created. The pro rata refund shall be in the form of a tax
19 credit applied against the tax liability reported on the annual
20 income tax returns filed pursuant to section 330 of the Tax
21 Reform Code of 1971 in the immediately succeeding fiscal year.
22 If the tax credit provided under this section exceeds the
23 taxpayer's liability, the taxpayer shall receive a refund of the
24 amount in excess of the liability.
25 Section 20. Effective date.
26 This act shall take effect immediately.
27 SECTION 1. THE ACT OF APRIL 9, 1929 (P.L.343, NO.176), KNOWN <--
28 AS THE FISCAL CODE, IS AMENDED BY ADDING AN ARTICLE TO READ:
29 ARTICLE XV-A
30 APPROPRIATIONS LIMITATIONS
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1 SECTION 1501-A. LIMITATIONS ON APPROPRIATIONS.
2 (A) GENERAL RULE.--EXCEPT AS SET FORTH IN SUBSECTION (B), IN
3 ANY FISCAL YEAR, THE GENERAL ASSEMBLY SHALL NOT INCREASE TOTAL
4 GENERAL FUND STATE APPROPRIATIONS ABOVE THE AMOUNT OF TOTAL
5 GENERAL FUND STATE APPROPRIATIONS AUTHORIZED FOR THE PRECEDING
6 FISCAL YEAR BY A PERCENTAGE WHICH EXCEEDS THE AVERAGE PERCENTAGE
7 INCREASE OVER THE IMMEDIATELY PRECEDING THREE CALENDAR YEARS IN
8 THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS OF THE BUREAU
9 OF LABOR STATISTICS UNLESS A REFERENDUM STATING THE AMOUNT AND
10 DURATION OF THE INCREASE IS APPROVED BY A MAJORITY OF THE
11 ELECTORS VOTING ON THE REFERENDUM.
12 (B) EXCEPTION.--SUBSECTION (A) SHALL NOT APPLY TO ANY OF THE
13 FOLLOWING:
14 (1) AN APPROPRIATION WHICH, AS A RESULT OF A REQUIREMENT
15 OF FEDERAL LAW, IS MADE FOR A NEW PROGRAM OR SERVICE OR FOR
16 AN INCREASE IN THE LEVEL OF SERVICE FOR AN EXISTING PROGRAM
17 BEYOND THE EXISTING LEVEL OF SERVICE.
18 (2) AN APPROPRIATION WHICH, AS A RESULT OF A REQUIREMENT
19 OF A FEDERAL OR STATE COURT ORDER WHICH HAS BECOME FINAL, IS
20 MADE FOR A NEW PROGRAM OR SERVICE OR FOR AN INCREASE IN THE
21 LEVEL OF SERVICE FOR AN EXISTING PROGRAM BEYOND THE EXISTING
22 LEVEL OF SERVICE.
23 (3) AN APPROPRIATION WHICH:
24 (I) PROVIDES FOR THE COMMONWEALTH'S SHARE OF
25 PAYMENTS FOR PENSION OBLIGATIONS AS PROVIDED BY LAW; AND
26 (II) IS APPROVED BY THREE-FIFTHS OF THE MEMBERS
27 ELECTED TO EACH HOUSE OF THE GENERAL ASSEMBLY.
28 (4) AN APPROPRIATION WHICH:
29 (I) IS FOR THE REPAYMENT OF INTEREST AND PRINCIPAL
30 FOR ALL DEBT INCURRED BY OR ON BEHALF OF THE
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1 COMMONWEALTH; AND
2 (II) IS APPROVED BY THREE-FIFTHS OF THE MEMBERS
3 ELECTED TO EACH HOUSE OF THE GENERAL ASSEMBLY.
4 (5) AN APPROPRIATION WHICH:
5 (I) IS IN RESPONSE TO A PRESIDENTIAL OR
6 GUBERNATORIAL DECLARATION OF AN EMERGENCY OR MAJOR
7 DISASTER IN ANY PART OF THIS COMMONWEALTH; AND
8 (II) WHICH IS APPROVED BY THREE-FIFTHS OF THE
9 MEMBERS ELECTED TO EACH HOUSE OF THE GENERAL ASSEMBLY.
10 SECTION 1502-A. REFUND OF SURPLUS OPERATING FUNDS.
11 SURPLUS OPERATING FUNDS IN THE GENERAL FUND AT THE END OF THE
12 FISCAL YEAR WHICH ARE NOT REQUIRED BY LAW TO BE DEPOSITED INTO
13 THE BUDGET STABILIZATION RESERVE FUND SHALL BE REFUNDED PRO RATA
14 TO THE CITIZENS OF THIS COMMONWEALTH BASED ON THE LIABILITY
15 REPORTED ON ANNUAL RETURNS FILED PURSUANT TO SECTION 330 OF THE
16 ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE
17 OF 1971, WITHIN THE FISCAL YEAR IN WHICH THE SURPLUS WAS
18 CREATED. THE PRO RATA REFUND SHALL BE IN THE FORM OF A TAX
19 CREDIT APPLIED AGAINST THE TAX LIABILITY REPORTED ON THE ANNUAL
20 INCOME TAX RETURNS FILED PURSUANT TO SECTION 330 OF THE TAX
21 REFORM CODE OF 1971 IN THE IMMEDIATELY SUCCEEDING FISCAL YEAR.
22 IF THE TAX CREDIT PROVIDED UNDER THIS SECTION EXCEEDS THE
23 TAXPAYER'S LIABILITY, THE TAXPAYER SHALL RECEIVE A REFUND OF THE
24 AMOUNT IN EXCESS OF THE LIABILITY.
25 SECTION 2. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
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