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                              PRIOR PASSAGE - NONE
                                                      PRINTER'S NO. 1665

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1100 Session of 2007


        INTRODUCED BY ROCK, METCALFE, QUIGLEY, ARGALL, BEAR,
           BENNINGHOFF, BOYD, CAPPELLI, COX, CREIGHTON, CUTLER,
           DENLINGER, EVERETT, FAIRCHILD, GABIG, GINGRICH, HICKERNELL,
           HUTCHINSON, KAUFFMAN, KORTZ, MANTZ, MARSHALL, MENSCH, MOUL,
           MUSTIO, PERRY, PYLE, RAPP, REICHLEY, ROAE, ROHRER, SCHRODER,
           STEIL, STERN, SWANGER, TURZAI, VEREB AND VULAKOVICH,
           MAY 24, 2007

        REFERRED TO COMMITTEE ON STATE GOVERNMENT, MAY 24, 2007

                               A JOINT RESOLUTION

     1  Proposing separate and distinct amendments to the Constitution
     2     of the Commonwealth of Pennsylvania, providing for spending
     3     limitations on the Commonwealth and for imposition or levy of
     4     taxes or license fees.

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby resolves as follows:
     7     Section 1.  The following separate and distinct amendments to
     8  the Constitution of Pennsylvania are proposed in accordance with
     9  the provisions of Article XI:
    10     That Article VIII be amended by adding sections to read:
    11  § 18.  Spending limitations.
    12     (a)  Total spending by the Commonwealth shall not exceed the
    13  spending limit in any fiscal year. The spending limit for any
    14  fiscal year shall be equal to the spending during the
    15  immediately prior fiscal year, adjusted by the lower percentage
    16  of the following:

     1     (i)  The change in the Consumer Price Index for All Urban
     2  Consumers from the immediately prior fiscal year, if expressed
     3  as a positive number; or
     4     (ii)  The change in the rate of population growth in this
     5  Commonwealth from the immediately prior fiscal year, if
     6  expressed as a positive number.
     7  The percentage of the rate of change used in any fiscal year to
     8  adjust the limit may be increased for that year, but not to a
     9  percentage in excess of 120% of clause (i) or (ii), whichever is
    10  lower, by the affirmative vote of three-fourths of the members
    11  elected to each House of the General Assembly. The
    12  Commonwealth's spending limit as provided in this subsection may
    13  be changed by the procedure outlined in Article XI, section
    14  1(a).
    15     (b)  The spending limit of the Commonwealth may be exceeded
    16  in any fiscal year for a presidentially declared emergency or
    17  major disaster. The spending limit may also be exceeded for
    18  other declared emergencies if the Governor so requests and the
    19  General Assembly approves by the affirmative vote of three-
    20  fourths of the members elected to each House of the General
    21  Assembly. The excess spending authorized by exceeding the limit
    22  in this manner shall not be included in the computation base of
    23  the spending limit for any subsequent fiscal year.
    24     (c)  Total spending by the Commonwealth means all
    25  appropriations and authorizations from the General Fund, the
    26  Public Transportation Assistance Fund and the Motor License Fund
    27  and funds created after the effective date of this subsection,
    28  and shall exclude refunds, servicing of bonded indebtedness
    29  incurred prior to the effective date of this subsection and of
    30  voter-approved bonded indebtedness, expenditures for funding the
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     1  unfunded pension liabilities existing on the effective date of
     2  this subsection and the spending of Federal funds, gifts or
     3  receipts restricted by laws in effect as of January 1, 2007.
     4  This section shall not be circumvented by creating additional
     5  spending programs in the General Fund or Motor License Fund, or
     6  transferring spending from the General Fund or Motor License
     7  Fund to existing special funds or restricted receipt accounts.
     8  § 19.  Imposition or levy of taxes or license fee.
     9     (a)  Except as provided in subsection (c), no tax or license
    10  fee may be imposed or levied except pursuant to an act of the
    11  General Assembly adopted with the concurrence of three-fourths
    12  of all members of each House.
    13     (b)  Except as provided in subsection (c), the effective rate
    14  of any tax levied or license fee imposed may not be increased
    15  except pursuant to an act of the General Assembly adopted with
    16  the concurrence of three-fourths of all members of each House.
    17     (c)  Prior to the beginning of each fiscal year of the
    18  Commonwealth, the General Assembly shall appropriate revenues to
    19  pay interest on its debt to which it has pledged its faith and
    20  credit and which interest is payable in the year for which the
    21  appropriation is made and to pay the principal of the debt,
    22  payable in such year, whether at maturity or otherwise. To the
    23  extent that insufficient revenues are provided to pay the
    24  principal and interest on the debt when due and payable, the
    25  first moneys thereafter received by the Commonwealth shall be
    26  set aside and applied to the payment of the principal and
    27  interest on the debt. To make up for the insufficient revenues,
    28  the General Assembly may increase the rate of taxes and fees
    29  after failing to pay when due the principal of and interest of
    30  the debt.
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     1     Section 2.  (a)  Upon the first passage by the General
     2  Assembly of these proposed constitutional amendments, the
     3  Secretary of the Commonwealth shall proceed immediately to
     4  comply with the advertising requirements of section 1 of Article
     5  XI of the Constitution of Pennsylvania and shall transmit the
     6  required advertisements to two newspapers in every county in
     7  which such newspapers are published in sufficient time after
     8  passage of these proposed constitutional amendments.
     9     (b)  Upon the second passage by the General Assembly of these
    10  proposed constitutional amendments, the Secretary of the
    11  Commonwealth shall proceed immediately to comply with the
    12  advertising requirements of section 1 of Article XI of the
    13  Constitution of Pennsylvania and shall transmit the required
    14  advertisements to two newspapers in every county in which such
    15  newspapers are published in sufficient time after passage of
    16  these proposed constitutional amendments. The Secretary of the
    17  Commonwealth shall submit the proposed constitutional amendments
    18  under section 1 to the qualified electors of this Commonwealth
    19  as separate ballot questions at the first primary, general or
    20  municipal election which meets the requirements of and is in
    21  conformance with section 1 of Article XI of the Constitution of
    22  Pennsylvania and which occurs at least three months after the
    23  proposed constitutional amendments are passed by the General
    24  Assembly.
    25     Section 3.  (a)  The addition of section 18(a) of Article
    26  VIII of the Constitution of Pennsylvania shall become effective
    27  beginning with the first fiscal year commencing more than six
    28  months following approval of section 18 by the electorate.
    29     (b)  The addition of section 19 of Article VIII of the
    30  Constitution of Pennsylvania shall not apply to any tax or
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     1  license fee authorized by an act of the General Assembly which
     2  has not taken effect following approval of section 19 by the
     3  electorate.


















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