Regular Session 2019-2020 House Bill 0092 P.N. 0094

PRINTER'S NO. 94

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

Session of

2019

INTRODUCED BY GROVE, KAUFFMAN, ROTHMAN, B. MILLER, BERNSTINE,

JONES, HICKERNELL, M. K. KELLER AND KAUFER, JANUARY 28, 2019

REFERRED TO COMMITTEE ON FINANCE, JANUARY 28, 2019

AN ACT

Amending Title 72 (Taxation and Fiscal Affairs) of the

Pennsylvania Consolidated Statutes, providing for budgetary

procedures; and establishing the Joint Revenue Estimation

Committee.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Title 72 of the Pennsylvania Consolidated

Statutes is amended by adding a part to read:

PART I

BUDGETARY PROCEDURES

Chapter

1. (Reserved)

3. Joint Revenue Estimation Committee

CHAPTER 1

(Reserved)

CHAPTER 3

JOINT REVENUE ESTIMATION COMMITTEE

Sec.

301. Definitions.

302. Joint Revenue Estimation Committee.

303. Meetings.

304. Revenue estimates.

305. Initial revenue estimate.

306. Revenue estimate error rates.

307. Presentation of revenue estimate.

§ 301. Definitions.

The following words and phrases when used in this chapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Committee." The Joint Revenue Estimation Committee

established under section 302 (relating to Joint Revenue

Estimation Committee).

"Department." The Department of Revenue of the Commonwealth.

"Secretary." The Secretary of Revenue of the Commonwealth.

§ 302. Joint Revenue Estimation Committee.

(a) Establishment.--The Joint Revenue Estimation Committee

is established and shall be convened by the secretary no later

than the first week of February following the beginning of each

legislative session of the General Assembly.

(b) Membership.--The committee shall be comprised of the

following members:

(1) The secretary.

(2) The Secretary of the Budget.

(3) The chairperson of the Appropriations Committee of

the Senate.

(4) The minority chairperson of the Appropriations

Committee of the Senate.

(5) The chairperson of the Appropriations Committee of

the House of Representatives.

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(6) The minority chairperson of the Appropriations

Committee of the House of Representatives.

(7) One resident appointed by the Governor.

(8) One resident appointed by the President pro tempore

of the Senate.

(9) One resident appointed by the Speaker of the House

of Representatives.

(10) One resident appointed by the Minority Leader of

the Senate.

(11) One resident appointed by the Minority Leader of

the House of Representatives.

(12) The Director of the Independent Fiscal Office as an

ex officio member.

the department who shall prepare any documents requested by a

member of the committee.

§ 303. Meetings.

The committee shall meet at least once a month to discuss

changes in the revenue collected by the Commonwealth during the

current month and the fiscal year compared to the most recently

released estimate made by the committee.

§ 304. Revenue estimates.

(a) Preparation of estimates.--Twice each fiscal year, by

December 16 and May 15, the committee shall prepare a joint

estimate of revenue for the General Fund. The estimate shall

include revenue the Commonwealth can anticipate collecting for

the current fiscal year and the ensuing fiscal year.

(b) Approval.--No revenue estimate may be approved without

being approved by 11 members of the committee. The following

shall apply:

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(1) If, prior to final adjournment of any regular

legislative session of the General Assembly, a law is enacted

providing for additional or less money to be deposited into

the General Fund, the committee shall prepare a joint

estimate of those revenues.

(2) The committee may release a revised revenue estimate

90 days following the release of an approved revenue estimate

under subsection (a) only if the estimate is approved by 11

members of the committee.

estimates to the Governor, General Assembly, State Treasurer and

Independent Fiscal Office.

(d) Failure to approve estimate.--If the committee fails to

approve a revenue estimate under this section, the Governor and

the General Assembly shall utilize the revenue estimates of the

Independent Fiscal Office for approving General Fund

expenditures.

§ 305. Initial revenue estimate.

The secretary shall convene the committee, which shall

release a revenue estimate for the current fiscal year and

ensuing fiscal year within 30 days of the effective date of this

section. If the committee is unable to agree on a revenue

estimate under section 304 (relating to revenue estimates), the

Governor and the General Assembly shall use a revenue estimate

from the Independent Fiscal Office to enact General Fund

expenditures for the ensuing fiscal year.

§ 306. Revenue estimate error rates.

The committee shall provide a public report on the error

rates of the previous fiscal year revenue estimates no later

than October 1 of the following fiscal year. Revenue error rates

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for each tax may not be greater than 3%. If an error rate is

greater than 3%, the committee shall develop a new model to

ensure error rates remain under 3%.

§ 307. Presentation of revenue estimate.

(a) General rule.--The December revenue estimate prepared

under section 304(a) (relating to revenue estimates) shall be

included in the presentation of the budget to the General

Assembly by the Governor under section 619 of the act of April

9, 1929 (P.L.177, No.175), known as The Administrative Code of

1929.

(b) Contents.--The revenue estimate submitted with the

budget shall include all of the following:

(1) The committee error rate.

(2) The highest revenue the Commonwealth could collect

the following fiscal year based on the committee error rate.

(3) The lowest revenue the Commonwealth could collect

the following fiscal year based on the committee error rate.

Section 2. This act shall take effect immediately.

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