BILL NUMBER: AB 2591 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member John A. Perez
FEBRUARY 19, 2010
An act to add Chapter 1.5 (commencing with Section 16330) to Part
2 of Division 4 of Title 2 of the Government Code, relating to the
state budget.
LEGISLATIVE COUNSEL'S DIGEST
AB 2591, as introduced, John A. Perez. State budget process:
nonrecurring revenue.
Under existing law, duties and responsibilities are imposed upon
the Governor and the Director of Finance relating to the preparation
and submission of the annual state budget to the Legislature,
including, among other things, providing a complete plan of all
proposed expenditures and estimated revenues for the ensuing fiscal
year. Existing provisions of the California Constitution prohibit the
Legislature from sending to the Governor for consideration, and
prohibit the Governor from signing, a Budget Bill that would
appropriate from the General Fund a total amount that, when combined
with specific appropriations and transfers, exceeds the General Fund
revenues for that fiscal year estimated as of the date of the Budget
Bill's passage.
This bill would require that nonrecurring revenue, as defined, be
used only for one-time expenditures, as defined, in the Budget Bill
for the ensuing year, and would specify the process for estimating,
evaluating, and determining the existence of nonrecurring revenue.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 1.5 (commencing with Section 16330) is added to
Part 2 of Division 4 of Title 2 of the Government Code, to read:
CHAPTER 1.5. NONRECURRING REVENUE
16330. For purposes of this chapter and Section 12 of Article IV
of the California Constitution, the following definitions apply:
(a) "Nonrecurring revenue" means General Fund proceeds of taxes
received in a fiscal year from any source that exceed both the amount
that the state received from that source in the immediately
preceding fiscal year and the amount the state expects to receive
from that source in each subsequent fiscal year.
(b) (1) "One-time expenditure" means any of the following:
(A) A transfer by statute to the Budget Stabilization Fund.
(B) An appropriation for one-time infrastructure or other capital
outlay purposes.
(C) An appropriation to retire, redeem, or defease outstanding
general obligation or other bonded indebtedness of the state.
(D) The return to taxpayers within the current or immediately
following fiscal year by a one-time revision of tax rates, or by
rebates.
(E) An appropriation for unfunded liabilities for vested
nonpension benefits for state annuitants.
(F) Appropriations necessary to meet the outstanding balance of
the maintenance factor owed by the state for one or more prior fiscal
years pursuant to subdivision (d) of Section 8 of Article XVI of the
California Constitution.
(2) "One-time expenditure" does not include either of the
following:
(A) An appropriation necessary to meet the state's obligation
under Section 8 of Article XVI of the California Constitution,
including any maintenance factor allocation for the current fiscal
year required pursuant to subdivisions (d) and (e) of that section.
(B) An appropriation necessary to balance the state budget for the
fiscal year in which the nonrecurring revenue is received, the
absence of which would produce a deficit for that fiscal year.
16331. Based on an analysis of the General Fund proceeds of taxes
received through April 30 of each year, the Franchise Tax Board and
State Board of Equalization shall identify each source of General
Fund proceeds of taxes that is higher than the tax proceeds received
from that source in the preceding fiscal year. The Franchise Tax
Board and the State Board of Equalization shall provide this
information to the Legislature, the Governor, the Controller, and the
public by May 15 of each year.
16332. By May 31 of each year, the Legislative Analyst and the
Director of Finance shall jointly do all of the following:
(a) Estimate the amount of nonrecurring revenue deposited in the
General Fund as of that date for the current fiscal year and provide
this estimate to the Legislature, the Governor, the Controller, and
the public. In determining this estimate, the Legislative Analyst and
the Director of Finance shall consider, at a minimum, the Governor's
estimate of nonrecurring revenue for the current fiscal year;
historical growth in General Fund proceeds of taxes, including data
provided by the Franchise Tax Board and the State Board of
Equalization pursuant to Section 16331; economic conditions and
projections; stock market trends, including data regarding capital
gains and the exercise of stock options; and an evaluation of the
revenue forecast for the prior fiscal year and the extent to which
that forecast was accurate.
(b) Determine whether the amount of nonrecurring revenue received
during the prior fiscal year was less than the amount of nonrecurring
revenue for that fiscal year that was appropriated pursuant to
subdivision (a) of Section 16333, and provide a certification of that
determination to the Legislature, the Governor, the Controller, and
the public.
16333. (a) By June 25 of each year, based on the estimate
provided pursuant to subdivision (a) of Section 16332, the
Legislature shall estimate the amount of nonrecurring revenue
received for the current fiscal year. Except as provided in
subdivision (b), nonrecurring revenue shall be used for one-time
expenditures only and shall be appropriated in the Budget Bill for
the ensuing fiscal year.
(b) If the amount appropriated pursuant to subdivision (a) in a
prior fiscal year exceeded the amount of nonrecurring revenue
received during that fiscal year, the excess amount may be deducted
from the amount of nonrecurring revenue available for appropriation
in ensuing fiscal years pursuant to subdivision (a).