New Jersey-2012-AR34-Introduced

Sponsored by:

Assemblyman DECLAN J. O'SCANLON, JR.

District 13 (Monmouth)

Assemblyman ALEX DECROCE

District 26 (Essex, Morris and Passaic)

Assemblywoman CAROLINE CASAGRANDE

District 11 (Monmouth)

Co-Sponsored by:

Assemblymen Webber, Dancer, Assemblywoman Angelini, Assemblymen Rible, Rumana, Amodeo, Assemblywoman McHose and Assemblyman Rudder

SYNOPSIS

Proposes Assembly rule requiring a bill having a fiscal impact on the State budget identify offsetting revenues or reductions in appropriations prior to final consideration.

CURRENT VERSION OF TEXT

Introduced Pending Technical Review by Legislative Counsel

An Assembly Resolution creating a Rule of the General Assembly 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 Rules of the General Assembly 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 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 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 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 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 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 resolution proposes an Assembly rule, 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.

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 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 the General Assembly or 54 affirmative votes for passage. 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 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 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 the State's annual appropriation act.