77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session NOTE: Matter within { + braces and plus signs + } in an amended section is new. Matter within { - braces and minus signs - } is existing law to be omitted. New sections are within { + braces and plus signs + } . LC 1237 House Joint Resolution 11 Introduced and printed pursuant to House Rule 12.00. Presession filed (at the request of House Interim Committee on Revenue) SUMMARY The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject to consideration by the Legislative Assembly. It is an editor's brief statement of the essential features of the measure as introduced. Proposes amendment to Oregon Constitution establishing Oregon Rainy Day Fund. Sets conditions for appropriation of moneys in fund. Limits amount of excess personal income tax revenues returned to personal income taxpayers to $250 per taxpayer. Transfers remaining excess personal income tax revenues to fund. Refers proposed amendment to people for their approval or rejection at next regular general election. JOINT RESOLUTION Be It Resolved by the Legislative Assembly of the State of Oregon: PARAGRAPH 1. The Constitution of the State of Oregon is amended by creating new sections 14a and 16 to be added to and made a part of Article IX, and by amending section 14, Article IX, such sections to read: { + SECTION 16. + } { + (1) The Oregon Rainy Day Fund is established as an account in the General Fund. The Legislative Assembly may establish subaccounts within the Oregon Rainy Day Fund. (2) The Legislative Assembly may appropriate moneys from the Oregon Rainy Day Fund only if the appropriation is approved by three-fifths of the members serving in each house of the Legislative Assembly and the Legislative Assembly finds one of the following: (a) That the last quarterly economic and revenue forecast for a biennium indicates that moneys available to the General Fund for the next biennium will be at least three percent less than appropriations from the General Fund for the current biennium; (b) That there has been a decline for two or more consecutive quarters in the last 12 months in seasonally adjusted nonfarm payroll employment; (c) That a quarterly economic and revenue forecast projects that revenues in the General Fund in the current biennium will be at least two percent below what the revenues were projected to be in the revenue forecast on which the legislatively adopted budget for the current biennium was based; or (d) That the Governor has declared that an emergency exists related to an earthquake, a tsunami or another natural disaster or an act of war. (3) Once each month, in the manner provided by law, a state agency designated by law shall calculate the amount of General Fund interest that is attributable to moneys in the Oregon Rainy Day Fund. The amount calculated under this subsection shall be transferred to the Oregon Rainy Day Fund. The Legislative Assembly by law may attribute interest on moneys in a subaccount in the Oregon Rainy Day Fund to the subaccount. (4) As used in this section, 'legislatively adopted budget ' means the budget enacted by the Legislative Assembly during an odd-numbered year regular session. + } { + Sec. 14. + } (1) As soon as is practicable after adjournment sine die of an odd-numbered year regular session of the Legislative Assembly, the Governor shall cause an estimate to be prepared of revenues that will be received by the General Fund for the biennium beginning July 1. The estimated revenues from corporate income and excise taxes shall be separately stated from the estimated revenues from other General Fund sources. (2) As soon as is practicable after the end of the biennium, the Governor shall cause actual collections of revenues received by the General Fund for that biennium to be determined. The revenues received from corporate income and excise taxes shall be determined separately from the revenues received from other General Fund sources. (3) If the revenues received by the General Fund from corporate income and excise taxes during the biennium exceed the amount estimated to be received from corporate income and excise taxes for the biennium, by two percent or more, the total amount of the excess shall be retained in the General Fund and used to provide additional funding for public education, kindergarten through twelfth grade. (4) If the revenues received from General Fund revenue sources, exclusive of those described in subsection (3) of this section, during the biennium exceed the amount estimated to be received from such sources for the biennium, by two percent or more, { - the total - } { + an + } amount of the excess shall be returned to personal income taxpayers. { + The amount returned may not exceed $250 per individual taxpayer. Any remaining amount of the excess shall be transferred to the Oregon Rainy Day Fund established by section 16 of this Article or any subaccount in the Oregon Rainy Day Fund. + } (5) The Legislative Assembly may enact laws: (a) Establishing a tax credit, refund payment or other mechanism by which the excess revenues are returned to taxpayers, and establishing administrative procedures connected therewith. (b) Allowing the excess revenues to be reduced by administrative costs associated with returning the excess revenues. (c) Permitting a taxpayer's share of the excess revenues not to be returned to the taxpayer if the taxpayer's share is less than a de minimis amount identified by the Legislative Assembly. (d) Permitting a taxpayer's share of excess revenues to be offset by any liability of the taxpayer for which the state is authorized to undertake collection efforts. (6)(a) Prior to the close of a biennium for which an estimate described in subsection (1) of this section has been made, the Legislative Assembly, by a two-thirds majority vote of all members elected to each { - House - } { + house + }, may enact legislation declaring an emergency and increasing the amount of the estimate prepared pursuant to subsection (1) of this section. (b) The prohibition against declaring an emergency in an act regulating taxation or exemption in section 1a { - , Article IX of this Constitution, - } { + of this Article + } does not apply to legislation enacted pursuant to this subsection. (7) This section does not apply: (a) If, for a biennium or any portion of a biennium, a state tax is not imposed on or measured by the income of individuals. (b) To revenues derived from any minimum tax imposed on corporations for the privilege of carrying on or doing business in this state that is imposed as a fixed amount and that is nonapportioned (except for changes of accounting periods). (c) To biennia beginning before July 1, 2001. { + SECTION 14a. + } { + (1) Section 16 of this Article and the amendment to section 14 of this Article by House Joint Resolution 11 (2013) apply to biennia beginning on or after July 1, 2013. (2) This section is repealed on June 30, 2019. + } PARAGRAPH 2. { + The amendment proposed by this resolution shall be submitted to the people for their approval or rejection at the next regular general election held throughout this state. + } ----------