Bill Text: NJ SCR93 | 2014-2015 | Regular Session | Introduced
Bill Title: Proposes a constitutional amendment to prohibit the diversion of dedicated State revenue and to suspend dedicated revenue measures if not appropriated for their dedicated purposes during a fiscal year.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-03-17 - Introduced in the Senate, Referred to Senate Budget and Appropriations Committee [SCR93 Detail]
Download: New_Jersey-2014-SCR93-Introduced.html
Sponsored by:
Senator DIANE B. ALLEN
District 7 (Burlington)
SYNOPSIS
Proposes a constitutional amendment to prohibit the diversion of dedicated State revenue and to suspend dedicated revenue measures if not appropriated for their dedicated purposes during a fiscal year.
CURRENT VERSION OF TEXT
As introduced.
A Concurrent Resolution proposing to amend Article VIII, Section II, paragraph 2 of the Constitution of the State of New Jersey.
Be It Resolved by the Senate of the State of New Jersey (the General Assembly concurring):
1. The following proposed amendment to the Constitution of the State of New Jersey is agreed to:
PROPOSED AMENDMENT
Amend Article VIII, Section II, paragraph 2 to read as follows:
2. No money shall be drawn
from the State treasury but for appropriations made by law. All moneys for the
support of the State government and for all other State purposes as far as can
be ascertained or reasonably foreseen, shall be provided for in one general
appropriation law covering one and the same fiscal year; except that when a
change in the fiscal year is made, necessary provision may be made to effect
the transition. No general appropriation law or other law appropriating money
for any State purpose shall be enacted if the appropriation contained therein,
together with all prior appropriations made for the same fiscal period, shall exceed
the total amount of revenue on hand and anticipated which will be available to
meet such appropriations during such fiscal period, as certified by the
Governor. No money shall be drawn from the State treasury for any State
purpose under a law that appropriates State revenue collected from State taxes,
fees, fines, interest or surcharges of any manner, that is required to be credited
to a special or dedicated account or fund established by statute, enacted
heretofore or hereafter, other than an account established by the general
appropriation law and any law that supplements that general appropriation law,
for any purpose or in any manner other than as established in that statute for
that special or dedicated account or fund, unless authorized by approval of a
specific amendment to this Constitution. If any amount of such State revenue
collected from State taxes, fees, fines, interest or surcharges is not
appropriated during a fiscal year for the purpose established in that statute,
that tax, fee, fine, interest or surcharge shall not be imposed during the next
fiscal year. No such State tax, fee, fine, interest or surcharge shall be
imposed thereafter unless there is enacted a subsequent fiscal year
appropriation of the revenue for the purpose as established in that statute for
that special or dedicated account or fund, or as may be authorized by approval
of a specific amendment to this Constitution.
(cf: Art.VIII, Sec.II, par.2, January 1, 1948)
2. When this proposed amendment to the Constitution is finally agreed to pursuant to Article IX, paragraph 1 of the Constitution, it shall be submitted to the people at the next general election occurring more than three months after the final agreement and shall be published at least once in at least one newspaper of each county designated by the President of the Senate, the Speaker of the General Assembly and the Secretary of State, not less than three months prior to the general election.
3. This proposed amendment to the Constitution shall be submitted to the people at that election in the following manner and form:
There shall be printed on each official ballot to be used at the general election, the following:
a. In every municipality in which voting machines are not used, a legend which shall immediately precede the question as follows:
If you favor the proposition printed below make a cross (X), plus (+), or check (a) in the square opposite the word "Yes." If you are opposed thereto make a cross (X), plus (+) or check (a) in the square opposite the word "No."
b. In every municipality the following question:
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PROHIBITS DIVERSION OF DEDICATED STATE REVENUE AND SUSPENDS COLLECTION IF NOT APPROPRIATED FOR DEDICATED PURPOSE |
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YES |
Do you approve amending the Constitution to prevent State revenues dedicated by statute for one purpose from being spent for another purpose? If these revenues are not spent they will not be collected in the next budget year. They will be collected in the future only if spent for their statutory purpose. |
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INTERPRETIVE STATEMENT |
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NO |
This amendment prohibits State revenues dedicated by statute for one purpose from being spent for another purpose. The revenue will not be collected again if not spent for its dedicated purpose. |
STATEMENT
This concurrent resolution proposes an amendment to the State Constitution to prohibit the diversion of statutorily dedicated revenues to other purposes. All State revenues heretofore or hereafter dedicated for a purpose established in statutory law could not be diverted to another use by an appropriation law unless authorized by approval of a specific amendment to the Constitution.
Recent State appropriations acts have redirected revenues in State funds, earmarked by statute for specific public purposes or programs, to other State programs or to the free balances in the State government's general operating surplus. New Jersey courts interpret the State Constitution to permit this kind of diversion. This interpretation explains that contrary instructions in the appropriations act "impliedly suspend" the dedicating statute for the duration of the fiscal year.
This constitutional amendment will end the use of these diversions of dedicated revenues, often vaguely phrased, that are contained among hundreds of other ordinary instructions concerning the use of hundreds of items of appropriations. Any future change in the use of statutorily dedicated revenues would have to be accomplished through an amendment to the State Constitution. This would require the approval of diversions of current or future statutory dedications of State revenues by the voters.
This constitutional amendment also will cause a source of dedicated State revenue to be suspended for a State fiscal year if no appropriation is made of the revenue for the dedicated purpose. This will provide a "cooling off" period during which the Governor and the Legislature can determine if the purpose of the revenue is still a priority, and if so, the revenue raising measure can be collected in the next fiscal year if the revenue is appropriated again for its specified statutory purpose.
