BILL REQ. #: H-3585.1
State of Washington | 59th Legislature | 2006 Regular Session |
Read first time 01/12/2006. Referred to Committee on Appropriations.
AN ACT Relating to creating the pension stabilization account; amending RCW 43.135.035 and 43.135.035; adding a new section to chapter 41.45 RCW; providing an effective date; and providing an expiration date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 A new section is added to chapter 41.45 RCW
to read as follows:
The pension stabilization account is created in the state treasury.
Moneys in the account may be spent only after appropriation.
Expenditures from the account may be used for amortizing unfunded
accrued actuarial liability in the state pension systems.
Sec. 2 RCW 43.135.035 and 2005 c 72 s 2 are each amended to read
as follows:
(1) After July 1, 1995, any action or combination of actions by the
legislature that raises state revenue or requires revenue-neutral tax
shifts may be taken only if approved by a two-thirds vote of each
house, and then only if state expenditures in any fiscal year,
including the new revenue, will not exceed the state expenditure limits
established under this chapter. However, for legislation enacted
between the effective date of this 2005 act and June 30, 2007, any
action or combination of actions by the legislature that raises state
revenue or requires revenue-neutral tax shifts may be taken with the
approval of a majority of members elected to each house, so long as
state expenditures in any fiscal year, including the new revenue, will
not exceed the state expenditure limits established under this chapter.
(2)(a) If the legislative action under subsection (1) of this
section will result in expenditures in excess of the state expenditure
limit, then the action of the legislature shall not take effect until
approved by a vote of the people at a November general election. The
state expenditure limit committee shall adjust the state expenditure
limit by the amount of additional revenue approved by the voters under
this section. This adjustment shall not exceed the amount of revenue
generated by the legislative action during the first full fiscal year
in which it is in effect. The state expenditure limit shall be
adjusted downward upon expiration or repeal of the legislative action.
(b) The ballot title for any vote of the people required under this
section shall be substantially as follows:
"Shall taxes be imposed on . . . . . . . in order to allow a
spending increase above last year's authorized spending adjusted for
inflation and population increases?"
(3)(a) The state expenditure limit may be exceeded upon declaration
of an emergency for a period not to exceed twenty-four months by a law
approved by a two-thirds vote of each house of the legislature and
signed by the governor. The law shall set forth the nature of the
emergency, which is limited to natural disasters that require immediate
government action to alleviate human suffering and provide humanitarian
assistance. The state expenditure limit may be exceeded for no more
than twenty-four months following the declaration of the emergency and
only for the purposes contained in the emergency declaration.
(b) Additional taxes required for an emergency under this section
may be imposed only until thirty days following the next general
election, unless an extension is approved at that general election.
The additional taxes shall expire upon expiration of the declaration of
emergency. The legislature shall not impose additional taxes for
emergency purposes under this subsection unless funds in the education
construction fund have been exhausted.
(c) The state or any political subdivision of the state shall not
impose any tax on intangible property listed in RCW 84.36.070 as that
statute exists on January 1, 1993.
(4) If the cost of any state program or function is shifted from
the state general fund on or after January 1, 1993, to another source
of funding, or if moneys are transferred from the state general fund to
another fund or account, the state expenditure limit committee, acting
pursuant to RCW 43.135.025(5), shall lower the state expenditure limit
to reflect the shift. For the purposes of this section, a transfer of
money from the state general fund to another fund or account includes
any state legislative action taken that has the effect of reducing
revenues from a particular source, where such revenues would otherwise
be deposited into the state general fund, while increasing the revenues
from that particular source to another state or local government
account. This subsection does not apply to the dedication or use of
lottery revenues under RCW 67.70.240(3) or property taxes under RCW
84.52.068, in support of education or education expenditures. This
subsection does not apply to transfers to the pension stabilization
account for purposes of amortizing the unfunded accrued actuarial
liability in the state pension systems.
(5) If the cost of any state program or function is shifted to the
state general fund on or after January 1, 2000, from another source of
funding, or if moneys are transferred to the state general fund from
another fund or account, the state expenditure limit committee, acting
pursuant to RCW 43.135.025(5), shall increase the state expenditure
limit to reflect the shift.
Sec. 3 RCW 43.135.035 and 2005 c 72 s 5 are each amended to read
as follows:
(1) After July 1, 1995, any action or combination of actions by the
legislature that raises state revenue or requires revenue-neutral tax
shifts may be taken only if approved by a two-thirds vote of each
house, and then only if state expenditures in any fiscal year,
including the new revenue, will not exceed the state expenditure limits
established under this chapter.
(2)(a) If the legislative action under subsection (1) of this
section will result in expenditures in excess of the state expenditure
limit, then the action of the legislature shall not take effect until
approved by a vote of the people at a November general election. The
state expenditure limit committee shall adjust the state expenditure
limit by the amount of additional revenue approved by the voters under
this section. This adjustment shall not exceed the amount of revenue
generated by the legislative action during the first full fiscal year
in which it is in effect. The state expenditure limit shall be
adjusted downward upon expiration or repeal of the legislative action.
(b) The ballot title for any vote of the people required under this
section shall be substantially as follows:
"Shall taxes be imposed on . . . . . . . in order to allow a
spending increase above last year's authorized spending adjusted for
personal income growth?"
(3)(a) The state expenditure limit may be exceeded upon declaration
of an emergency for a period not to exceed twenty-four months by a law
approved by a two-thirds vote of each house of the legislature and
signed by the governor. The law shall set forth the nature of the
emergency, which is limited to natural disasters that require immediate
government action to alleviate human suffering and provide humanitarian
assistance. The state expenditure limit may be exceeded for no more
than twenty-four months following the declaration of the emergency and
only for the purposes contained in the emergency declaration.
(b) Additional taxes required for an emergency under this section
may be imposed only until thirty days following the next general
election, unless an extension is approved at that general election.
The additional taxes shall expire upon expiration of the declaration of
emergency. The legislature shall not impose additional taxes for
emergency purposes under this subsection unless funds in the education
construction fund have been exhausted.
(c) The state or any political subdivision of the state shall not
impose any tax on intangible property listed in RCW 84.36.070 as that
statute exists on January 1, 1993.
(4) If the cost of any state program or function is shifted from
the state general fund or a related fund to another source of funding,
or if moneys are transferred from the state general fund or a related
fund to another fund or account, the state expenditure limit committee,
acting pursuant to RCW 43.135.025(5), shall lower the state expenditure
limit to reflect the shift. For the purposes of this section, a
transfer of money from the state general fund or a related fund to
another fund or account includes any state legislative action taken
that has the effect of reducing revenues from a particular source,
where such revenues would otherwise be deposited into the state general
fund or a related fund, while increasing the revenues from that
particular source to another state or local government account. This
subsection does not apply to the dedication or use of lottery revenues
under RCW 67.70.240(3) or property taxes under RCW 84.52.068, in
support of education or education expenditures. This subsection does
not apply to transfers to the pension stabilization account for
purposes of amortizing the unfunded accrued actuarial liability in the
state pension systems.
(5) If the cost of any state program or function and the ongoing
revenue necessary to fund the program or function are shifted to the
state general fund or a related fund on or after January 1, 2007, the
state expenditure limit committee, acting pursuant to RCW
43.135.025(5), shall increase the state expenditure limit to reflect
the shift.
NEW SECTION. Sec. 4 Section 2 of this act expires July 1, 2007.
NEW SECTION. Sec. 5 Section 3 of this act takes effect July 1,
2007.