Trial Engrossment of Amendment A05102 to House Bill 1940 P.N. 2779, Regular Session 2017-2018

A05102

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1940

Session of

2017

INTRODUCED BY REED, SAYLOR, DUNBAR, NELSON, DELOZIER, R. BROWN,

WARD, BERNSTINE, CUTLER, BOBACK, GREINER, A. HARRIS, FEE,

BARRAR, ROTHMAN, RYAN, LAWRENCE, MILLARD, TURZAI, PHILLIPS-

HILL, HELM, DUSH, COX, EVERETT, OBERLANDER, TOEPEL, STAATS,

KEEFER, WHEELAND, BLOOM, DOWLING, WATSON, KLUNK, MASSER,

BENNINGHOFF, GROVE AND SONNEY, DECEMBER 1, 2017

AS REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF

REPRESENTATIVES, AS AMENDED, DECEMBER 5, 2017

AN ACT

Amending the act of April 9, 1929 (P.L.177, No.175), entitled,

as amended, "An act providing for and reorganizing the

conduct of the executive and administrative work of the

Commonwealth by the Executive Department thereof and the

administrative departments, boards, commissions, and officers

thereof, including the boards of trustees of State Normal

Schools, or Teachers Colleges; abolishing, creating,

reorganizing or authorizing the reorganization of certain

administrative departments, boards, and commissions; defining

the powers and duties of the Governor and other executive and

administrative officers, and of the several administrative

departments, boards, commissions, and officers; fixing the

salaries of the Governor, Lieutenant Governor, and certain

other executive and administrative officers; providing for

the appointment of certain administrative officers, and of

all deputies and other assistants and employes in certain

departments, boards, and commissions; providing for judicial

administration; and prescribing the manner in which the

number and compensation of the deputies and all other

assistants and employes of certain departments, boards and

commissions shall be determined," in Commonwealth budget

procedures, further providing for revenue estimates and

providing for the Budget Stabilization Reserve Fund.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 618(a) of the act of April 9, 1929

(P.L.177, No.175), known as The Administrative Code of 1929, is

amended to read:

Section 618. Revenue Estimates.--(a) (1) The Department of

Revenue in conjunction with the Secretary of the Budget shall

make revenue estimates for the use of the Governor in preparing

the budget with periodic revisions until the final estimate is

signed by the Governor not later than the time [he signs] the

general appropriation bill becomes law. The revenue estimates

used [to sign] in conjunction with any appropriation bill shall

show separately State revenues, Federal funds, and, if

specifically appropriated, funds from other sources.

(2) [The] If the Governor signs an appropriation bill, the

Governor shall item veto any part [of any appropriation bill]

that causes total appropriations to exceed the official REVENUE

estimate plus any unappropriated surplus.

(3) If the general appropriation bill becomes law without

the approval of the Governor and the amount appropriated in the

general appropriation bill and other appropriation bills exceeds

the official REVENUE estimate plus any unappropriated surplus,

the following shall apply:

(i) The Secretary of the Budget shall, no later than the

time that the general appropriation bill becomes law, disapprove

or reduce amounts under section 615 from the departments, boards

and commissions to which section 615 applies which cause the

total appropriations to exceed the official REVENUE estimate

plus any unappropriated surplus.

(ii) Except as provided under subparagraph (iii), at no time

during a fiscal year when this paragraph applies may the total

amount disapproved or reduced under this paragraph be less than

the total amount disapproved or reduced under this paragraph at

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the time the general appropriation bill becomes law.

(iii) During a fiscal year in which this subparagraph

applies, if a change in a statute affecting revenues and

receipts is enacted that results in a change in a revenue

estimate, the amounts disapproved or reduced under this

paragraph may be revised to account for the additional revenue.

(4) No changes in the [revenue estimates] OFFICIAL REVENUE

ESTIMATE shall be made thereafter unless changes in statutes

affecting revenues and receipts are enacted.

* * *

Section 2. The act is amended by adding a section to read:

Section 626. Budget Stabilization Reserve Fund.-- (a) The

following apply:

(1) If the balance of the Budget Stabilization Reserve Fund

on June 30, 2017, is less than six per centum (6%) of the

General Fund revenues received in the 2016-2017 fiscal year, the

General Assembly shall appropriate two hundred million dollars

($200,000,000) to the Budget Stabilization Reserve Fund from

revenues received under Article III of the act of March 4, 1971

(P.L.6, No.2), known as the "Tax Reform Code of 1971," before

June 30, 2018. The appropriation must be transferred to the

Budget Stabilization Reserve Fund before the funds generated

under Article III of the "Tax Reform Code of 1971" are used for

other appropriations. This appropriation shall be in addition to

transfers required under section 1702-A(b) of the act of April

9, 1929 (P.L.343, No.176), known as "The Fiscal Code."

(2) Each year thereafter, if the balance of the Budget

Stabilization Reserve Fund on June 30 of the prior year is less

than six per centum (6%) of General Fund revenues received by

June 30 of that fiscal year, the General Assembly shall

A05102 - 3 -

appropriate two hundred million dollars ($200,000,000) to the

Budget Stabilization Reserve Fund from revenues received under

Article III of the "Tax Reform Code of 1971," before June 30 of

the subsequent year. The appropriation must be transferred to

the Budget Stabilization Reserve Fund before the funds generated

under Article III of the "Tax Reform Code of 1971" may be used

for other appropriations. This appropriation shall be in

addition to transfers required under section 1702-A(b) of "The

Fiscal Code."

(b) If, at the end of any fiscal year, the ending balance of

the Budget Stabilization Reserve Fund equals or exceeds fifteen

per centum (15%) of the actual General Fund revenues received

for the fiscal year, the General Assembly shall enact in

separate legislation a refund to taxpayers of the surplus in

excess of fifteen per centum (15%) of General Fund revenues

remaining in the Budget Stabilization Reserve Fund.

Section 2 3. This act shall apply to general appropriation

acts enacted after the effective date of this act.

Section 3 4. This act shall take effect immediately.

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