Bill Text: VA HB1841 | 2023 | Regular Session | Comm Sub
Bill Title: Revenue Stabilization Fund and Revenue Reserve Fund; elimination of certain required deposits.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2023-02-25 - Failed to pass in House [HB1841 Detail]
Download: Virginia-2023-HB1841-Comm_Sub.html
Be it enacted by the General Assembly of Virginia:
1. That §§2.2-1829 and 2.2-1831.3 of the Code of Virginia are amended and reenacted as follows:
§2.2-1829. Reports of Auditor of Public Accounts; Fund deposits, withdrawals, and budgetary amendments.
A. On or before December 1 of each year, the Auditor of Public Accounts shall report to the General Assembly the certified tax revenues collected in the most recently ended fiscal year. The Auditor shall, at the same time, provide his report on (i) the limitation on the total amount in the Fund; (ii) the amount that could be paid into the Fund; and (iii) the amount necessary for deposit for the next fiscal year into the Fund in order to satisfy the mandatory deposit requirement of Article X, Section 8 of the Constitution of Virginia. The Governor shall include any such amount in his budget bill submitted to the General Assembly pursuant to §2.2-1509. A schedule of deposits may be provided for in the Appropriation Act.
B. If the report of the Auditor of Public Accounts, pursuant
to subsection A, indicates that the annual percentage increase in the certified
tax revenues collected in the most recently ended fiscal year is eight percent
or greater than the certified tax revenues collected for the immediately
preceding fiscal year and that such annual percentage increase in the certified
tax revenues for the most recently ended fiscal year is also equal to or
greater than 1.5 times the average annual percentage increase in the certified
tax revenues collected in the six fiscal years immediately preceding the most
recently ended fiscal year, the Governor shall include in his budget recommendations,
submitted to the General Assembly in the subsequent session pursuant to §
2.2-1509, an additional amount for deposit to the Fund in excess of any
mandatory deposit to the Fund required by Article X, Section 8 of the
Constitution of Virginia. Such additional amount shall be equal to at least 25
percent of the product of the certified tax revenues collected in the most
recently ended fiscal year multiplied by the difference between the annual
percentage increase in the certified tax revenues collected for the most
recently ended fiscal year and the average annual percentage increase in the
certified tax revenues collected in the six fiscal years immediately preceding
the most recently ended fiscal year. Any such additional deposits to the Fund shall
be included in the Governor's budget recommendations submitted to the General
Assembly in the subsequent session pursuant to §2.2-1509 only if the estimate
of general fund revenues prepared in accordance with §2.2-1503 for the fiscal
year in which the deposit is to be made is at least five eight percent
greater than the actual general fund revenues for the immediately preceding
fiscal year.
C. The State Comptroller shall draw such warrants as appropriated and the State Treasurer shall deposit such warrants into the Fund. No amounts shall be withdrawn from the Fund except pursuant to appropriations made by the General Assembly in accordance with §2.2-1830. However, if any amounts accrue, such as through interest or dividends, to the credit of the Fund in excess of the limitation calculated by the Auditor of Public Accounts as provided in subsection E, any excess shall be paid into the general fund either from the Fund or from the Revenue Reserve Fund created pursuant to § 2.2-1831.2.
D. For the purposes of the Comptroller's preliminary and final annual reports as required by §2.2-813, all balances remaining in the Fund on June 30 of each fiscal year shall be considered to be a portion of the fund balance of the general fund of the state treasury.
E. At no time shall the combined amount in the Fund and the
Revenue Reserve Fund exceed 15 20 percent of the Commonwealth's
average annual tax revenues derived from taxes on income and retail sales as
certified by the Auditor of Public Accounts for the three fiscal years
immediately preceding.
§2.2-1831.3. Commitment of funds for Revenue Reserve Fund.
A. On or before November 1 of each year, the Auditor of Public Accounts shall report to the General Assembly the total general fund revenues collected in the most recently ended fiscal year. The Auditor of Public Accounts shall, at the same time, provide his report on the amount that could be paid into the Fund and the amount by which the amount in the Fund is less than the maximum amount permitted.
B. Whenever there is a fiscal year in which general fund revenues do not result in a mandatory deposit to the Revenue Stabilization Fund required by Article X, Section 8 of the Constitution of Virginia, the Comptroller shall, at the end of the fiscal year, commit within his annual report pursuant to §2.2-813 the amount of the general fund revenue in excess of the official forecast for that prior fiscal year, less any deposit to the Virginia Water Quality Improvement Fund pursuant to subsection A of § 10.1-2128, for deposit into the Fund. Such amount committed for deposit into the Fund shall not exceed one percent of the total general fund revenues for the prior fiscal year.
C. The Governor shall include in "The Budget Bill" pursuant to §2.2-1509 recommended appropriations from the general fund or recommended amendments to general fund appropriations in the general appropriation act in effect at that time an amount for deposit into the Fund at least equal to the amounts committed by the Comptroller and confirmed by the Auditor of Public Accounts for such purposes pursuant to the provisions of subsection B. A schedule of deposits may be provided in the appropriation act.
D. The State Comptroller shall draw such warrants as appropriated, and the State Treasurer shall deposit such warrants into the Fund. No withdrawal shall be made from the Fund except in accordance with § 2.2-1831.4.
E. For the purposes of the Comptroller's preliminary and final annual reports as required by §2.2-813, all balances remaining in the Fund on June 30 of each fiscal year shall be considered to be a portion of the fund balance of the general fund of the state treasury. However, if any amounts accrue, such as through interest or dividends, to the credit of the Fund in excess of the limitation calculated by the Auditor of Public Accounts as provided in subsection F, any excess shall be paid into the general fund either from the Fund or from the Revenue Stabilization Fund created pursuant to § 2.2-1828.
F. At no time shall the combined amount in the Fund and the
Revenue Stabilization Fund created pursuant to §2.2-1828 exceed 15 20
percent of the Commonwealth's average annual tax revenues derived from
taxes on income and retail sales as certified by the Auditor of Public Accounts
for the three fiscal years immediately preceding.
