Bill Text For SB1071 - Committee Substitute

 1|                          STATE OF OKLAHOMA                            |
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 2|             1st Session of the 57th Legislature (2019)                |
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 3|COMMITTEE SUBSTITUTE                                                   |
  |FOR                                                                    |
 4|SENATE BILL 1071                     By: Thompson and Rader of the     |
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  |                                         Wallace and Hilbert of the    |
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10|                        COMMITTEE SUBSTITUTE                           |
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11|       An Act relating to public finance; amending Section             |
  |       1, Chapter 337, O.S.L. 2016, as amended by Section 1,           |
12|       Chapter 316, O.S.L. 2018 (62 O.S. Supp. 2018, Section           |
  |       34.102), which relates to the Revenue Stabilization             |
13|       Fund; prohibiting deposits under certain conditions;            |
  |       limiting deposits under certain conditions; requiring           |
14|       deposits be reduced under certain conditions;                   |
  |       defining term; and providing an effective date.                 |
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17|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:                  |
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18|    SECTION 1.     AMENDATORY     Section 1, Chapter 337, O.S.L.       |
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19|2016, as amended by Section 1, Chapter 316, O.S.L. 2018 (62 O.S.       |
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20|Supp. 2018, Section 34.102), is amended to read as follows:            |
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21|    Section 34.102.  A.  There is hereby created in the State          |
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22|Treasury a revolving fund to be known and designated as the "Revenue   |
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23|Stabilization Fund".  The fund shall be a continuing fund, not         |
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24|subject to fiscal year limitations.                                    |
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   Req. No. 2326                                                   Page 1
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 1|    B.  For determinations made regarding deposits for fiscal years    |
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 2|beginning on or after July 1, 2019, no monies shall be deposited to    |
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 3|the credit of the Revenue Stabilization Fund until such time as the    |
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 4|amount of actual revenue certified by the State Board of               |
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 5|Equalization as having been deposited into the General Revenue Fund    |
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 6|for the first fiscal year prior to the beginning of the fiscal year    |
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 7|that deposits to the Revenue Stabilization Fund are first made         |
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 8|equals or exceeds Six Billion Six Hundred Million Dollars              |
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 9|($6,600,000,000.00).                                                   |
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10|    C.  Once the provisions prescribed by subsection B of this         |
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11|section have been met, deposits to the Revenue Stabilization Fund as   |
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12|prescribed by this section may be made during any subsequent fiscal    |
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13|year according to the requirements and limitations imposed by this     |
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14|act; provided, that no deposits shall be made during a fiscal year     |
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15|where the State Board of Equalization General Revenue Fund             |
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16|certification for said fiscal year is less than the State Board of     |
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17|Equalization General Revenue Fund certification for the previous       |
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18|fiscal year plus an increment equal to the amount otherwise            |
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19|calculated for deposit pursuant to subsection E of this section.       |
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20|    D.  Notwithstanding any other provisions of this section, no       |
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21|monies shall be deposited to the credit of the Revenue Stabilization   |
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22|Fund for:                                                              |
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23|    1.  For any month during a fiscal year after the month during      |
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24|which the declaration of a revenue failure pursuant to the             |
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   Req. No. 2326                                                   Page 2
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 1|provisions of Section 34.49 of this title has been made.  For          |
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 2|purposes of this subsection, the limitation on deposits to the         |
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 3|Revenue Stabilization Fund shall be imposed for the remaining months   |
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 4|of the fiscal year during which the revenue failure was declared,      |
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 5|but shall not operate as a limitation upon deposits for any            |
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 6|subsequent fiscal year unless a revenue failure is declared at some    |
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 7|time during such fiscal year;                                          |
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 8|    2.  That would cause deposits to the Revenue Stabilization Fund    |
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 9|for the fiscal year to exceed one and five-tenths percent (1.5%) of    |
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10|the State Board of Equalization General Revenue Fund certification     |
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11|for that fiscal year; or                                               |
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12|    3.  That would cause the balance of the Revenue Stabilization      |
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13|Fund to exceed five percent (5%) of the State Board of Equalization    |
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14|General Revenue Fund certification for that fiscal year.               |
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15|    E.  The Except as provided in subsection I of this section, the    |
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16|Revenue Stabilization Fund shall consist of:                           |
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17|    1.  One hundred percent (100%) of the revenue derived from the     |
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18|gross production tax on oil levied pursuant to Section 1001 of Title   |
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19|68 of the Oklahoma Statutes which is in excess of the five-year        |
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20|average computed as prescribed by Section 34.103 of this title;        |
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21|    2.  One hundred percent (100%) of the revenue derived from the     |
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22|gross production tax on natural gas levied pursuant to Section 1001    |
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23|of Title 68 of the Oklahoma Statutes which is in excess of the         |
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   Req. No. 2326                                                   Page 3
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 1|five-year average computed as prescribed by Section 34.103 of this     |
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 2|title;                                                                 |
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 3|    3.  Seventy-five percent (75%) of the revenue derived from         |
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 4|corporate income tax levied pursuant to Section 2355 of Title 68 of    |
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 5|the Oklahoma Statutes which is in excess of the five-year average      |
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 6|computed as prescribed by Section 34.103 of this title; and            |
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 7|    4.  Any amounts appropriated by the Legislature.                   |
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 8|    F.  In the event that a revenue failure is declared with respect   |
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 9|to the General Revenue Fund pursuant to Section 34.49 of this title,   |
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10|the Director of the Office of Management and Enterprise Services may   |
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11|withdraw up to one-quarter (1/4) of the balance of the Revenue         |
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12|Stabilization Fund available at the beginning of the fiscal year,      |
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13|provided the total amount withdrawn shall not exceed the amount of     |
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14|the declared revenue failure, to reduce or avoid reductions to         |
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15|agencies for the current fiscal year and to mitigate potential         |
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16|reductions of funds to be expended by common school districts which    |
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17|were appropriated or authorized by the Legislature, but excluding      |
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18|any funds which are apportioned directly to common school districts.   |
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19|    G.  In the event that a revenue failure is declared with respect   |
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20|to the General Revenue Fund pursuant to Section 34.49 of this title,   |
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21|the Legislature may appropriate up to one-quarter (1/4) of the         |
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22|balance of the Revenue Stabilization Fund available at the beginning   |
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23|of the fiscal year, not to exceed the amount of the revenue failure    |
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   Req. No. 2326                                                   Page 4
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 1|as declared with respect to the General Revenue Fund pursuant to       |
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 2|Section 34.49 of this title.                                           |
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 3|    H.  If the amount of revenue certified by the State Board of       |
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 4|Equalization at its February meeting in any year to be collected in    |
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 5|the General Revenue Fund for the upcoming fiscal year is less than     |
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 6|the amount of revenue certified by the State Board of Equalization     |
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 7|to be collected in the General Revenue Fund for the current fiscal     |
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 8|year as determined at its February meeting conducted in the            |
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 9|preceding calendar year, the Legislature may appropriate up to         |
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10|one-half (1/2) of the balance of the Revenue Stabilization Fund        |
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11|available at the beginning of the fiscal year; provided, that the      |
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12|amount withdrawn shall not exceed the amount of the decline in         |
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13|revenue certified.                                                     |
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14|    I.  If during the Board of Equalization certification process,     |
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15|one or more of the revenue sources identified in paragraphs 1, 2 and   |
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16|3 of subsection E of this section are forecasted to experience a       |
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17|revenue decrease, then the total deposits to the Revenue               |
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18|Stabilization Fund as otherwise calculated under subsection E of       |
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19|this section shall be reduced in an amount equal to such revenue       |
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20|decreases.  For purposes of this subsection, "revenue decrease"        |
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21|means an identified revenue source derived in an amount less than      |
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22|the five-year average for such revenue source.                         |
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23|    SECTION 2.  This act shall become effective November 1, 2019.      |
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   Req. No. 2326                                                   Page 5
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 1|    57-1-2326      AS        5/19/2019 1:41:10 PM                      |
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   Req. No. 2326                                                   Page 6
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