New Jersey-2012-ACR74-Introduced

A Concurrent Resolution creating a Joint Rule of the Legislature to require a bill having a fiscal impact on the State budget to identify offsetting revenues or reductions in appropriations prior to final consideration.

Be It Resolved by the General Assembly of the State of New Jersey (the Senate concurring):

The Joint Rules of the Legislature are amended by the addition of the following rules to be appropriately numbered:

"Pay-as-you-go Requirement"

1. No bill, which has been certified by the Legislative Budget and Finance Officer as requiring a fiscal note or estimate, shall be considered on third reading or for final passage in the Senate or General Assembly unless:

a. A fiscal note or estimate has been made publicly available by the Legislative Budget and Finance Officer at least one full calendar day prior to consideration; and

b. The bill identifies offsetting reductions in appropriations sufficient to provide for the estimated cost to the State of implementing the bill such that enactment of the bill yields no net increase in expenditures to the State; or

c. The bill identifies available or anticipated revenues in a State fund dedicated to the purposes of the bill sufficient to provide for the estimated cost to the State of implementing the bill; or

d. The bill imposes a new State tax or fee or increases an existing State tax or fee by an amount sufficient to provide for the estimated cost to the State of implementing the bill; provided, however, the bill imposing a new State tax or fee or increasing an existing State tax or fee receives at least 27 affirmative votes in the Senate and 54 affirmative votes in the General Assembly for passage; or

e. The bill provides for a combination of means pursuant to this section sufficient to provide for the estimated cost to the State of implementing the bill.

As used in this Joint Rule, a new State tax or fee or an increase in a State tax or fee shall include, but not be limited to, any of the following: an increase in any State tax rate; the elimination, suspension, deferral or reduction of a State tax exemption, deduction, credit or refund; a delay in the expiration or repeal of a State tax; an imposition of any surtax or surcharge; enactment of a new State fee or surcharge or increase in any State fee or surcharge; or any other State tax policy change or fee policy change which results in a net increase in State revenues.

2. A bill which is not certified for a fiscal note by the Legislative Budget and Finance Officer but which makes an appropriation of State revenue shall not be considered for third reading or final passage in the Senate or General Assembly unless the undesignated fund balance available from total State resources, as certified by the Governor in the annual appropriations act for the fiscal year in which the bill under consideration would take effect, exceeds five percent of the total amount appropriated in the annual appropriations act for the same fiscal period inclusive of the fiscal impact of the bill under consideration. The provisions of this Joint Rule shall not apply to consideration for third reading or for final passage of the annual appropriations act.

3. This resolution shall take effect immediately.

STATEMENT

This concurrent resolution proposes a Joint Rule of the Legislature, to be known as the "Pay-as-you-go Requirement" for consideration of legislation, to require that any bill having a fiscal impact on the State budget identify sufficient reductions in appropriations or new or existing revenues which will offset the cost of the bill prior to consideration of the bill for third reading or final passage by the Senate or General Assembly.

Specifically, the rule would prohibit a bill which has been certified by the Legislative Budget and Finance Officer as requiring a fiscal note from being considered for third reading or final passage in the Senate or General Assembly unless a Legislative fiscal note or estimate has been made publicly available at least one full day prior to consideration of the bill. In addition, for any bill determined to result in a cost to the State, the bill must identify sufficient means by which that cost will be offset through one or more of the following: a reduction in appropriations; available or anticipated revenues from a State fund dedicated for purposes of the bill; or a new or enhanced revenue resource. In the case of the latter, any bill imposing a new tax or fee or increasing an existing tax or fee would require a "super majority" vote of 2/3rds of each House for passage, or 27 affirmative votes in the Senate and 54 affirmative votes in the General Assembly. As defined in the bill, a new tax or fee or an increase in an existing tax or fee includes, but is not limited to, any of the following: an increase in any State tax rate; the elimination, suspension, deferral or reduction of a State tax exemption, deduction, credit or refund; a delay in the expiration or repeal of a State tax; an imposition of a surtax or surcharge; enactment of a new State fee or surcharge or increase in any State fee or surcharge; or any other State tax policy change or fee policy change which results in a net increase in State revenues.

The Joint Rule would also prohibit a bill which is not certified for a fiscal note by the Legislative Finance and Budget Officer but which makes an appropriation from being considered for third reading or final passage in the Senate or General Assembly unless the total amount of all State resources certified by the Governor in the annual appropriations act exceeds by five percent the total amount appropriated for that same fiscal year inclusive of the fiscal impact of the bill under consideration. This provision is not intended to apply to consideration for third reading or for final passage of the annual appropriations act.