TAX STABILIZATION RESERVE FUND ACT - REPEALED — 1985 Pa. Act 32 (historical enacted text)

Historical Act text

SENATE AMENDED
PRIOR PRINTER'S NOS. 302, 328, 1826 PRINTER'S NO. 1953
INTRODUCED BY FEE, PIEVSKY, DOMBROWSKI, LAUGHLIN, MANDERINO,
COLAFELLA, CLARK, PRATT, IRVIS, D. R. WRIGHT, VEON, BOWSER,
O'DONNELL, STUBAN, BALDWIN, SHOWERS, ACOSTA, AFFLERBACH,
ANGSTADT, ARGALL, ARTY, BARBER, BATTISTO, BELARDI, BELFANTI,
BIRMELIN, BLACK, BLAUM, BOOK, BORTNER, BOWLEY, BOYES,
BROUJOS, BUNT, BURD, BURNS, BUSH, CALTAGIRONE, CAPPABIANCA,
CARLSON, CARN, CAWLEY, CESSAR, CHADWICK, CIMINI, CIVERA,
CLYMER, COHEN, COLE, CORDISCO, CORNELL, COSLETT, COWELL, COY,
DALEY, DAVIES, DEAL, DeLUCA, DeVERTER, DIETZ, DININNI,
DISTLER, DONATUCCI, DORR, DUFFY, DURHAM, EVANS, FARGO,
FATTAH, FISCHER, FLICK, A. C. FOSTER, JR., FOX, FREEMAN,
FREIND, FRYER, GALLAGHER, GALLEN, GAMBLE, GANNON, GEIST,
GEORGE, GLADECK, GODSHALL, GREENWOOD, GRUITZA, GRUPPO,
HAGARTY, HALUSKA, HARPER, HASAY, HAYES, HERMAN, HONAMAN,
HOWLETT, HUTCHINSON, ITKIN, JACKSON, JAROLIN, JOHNSON,
JOSEPHS, KASUNIC, KENNEDY, KENNEY, KOSINSKI, KUKOVICH,
LANGTRY, LASHINGER, LESCOVITZ, LETTERMAN, LEVDANSKY, LEVIN,
LINTON, LIVENGOOD, LLOYD, LUCYK, MACKOWSKI, MAIALE,
MANMILLER, MARKOSEK, MAYERNIK, McCALL, McCLATCHY, McHALE,
McVERRY, MERRY, MICHLOVIC, MICOZZIE, MILLER, MOEHLMANN,
MORRIS, MOWERY, MRKONIC, NAHILL, NOYE, O'BRIEN, OLASZ,
OLIVER, PERZEL, PETRARCA, PETRONE, PHILLIPS, PISTELLA, PITTS,
POTT, PRESSMANN, PRESTON, PUNT, RAYMOND, REBER, REINARD,
RICHARDSON, RIEGER, ROBBINS, RUDY, RYAN, RYBAK, SALOOM,
SAURMAN, SEMMEL, SERAFINI, SEVENTY, SIRIANNI, B. SMITH,
L. E. SMITH, D. W. SNYDER, G. M. SNYDER, STABACK, STAIRS,
STEIGHNER, STEVENS, STEWART, SWEET, E. Z. TAYLOR,
F. E. TAYLOR, J. J. TAYLOR, TELEK, TIGUE, TRELLO, TRUMAN,
VAN HORNE, WAMBACH, WASS, WESTON, WIGGINS, WILLIAMS, WILSON,
WOGAN, WOZNIAK, J. L. WRIGHT, R. C. WRIGHT AND YANDRISEVITS,
FEBRUARY 6, 1985
AS AMENDED ON THIRD CONSIDERATION, IN SENATE, JUNE 27, 1985
AN ACT
1 Creating a special fund in the Treasury Department for use in
2 attracting major industry into this Commonwealth; AND <--
3 establishing a procedure for the appropriation and use of
4 moneys in the fund; and making an appropriation; ESTABLISHING <--
1 THE TAX STABILIZATION RESERVE FUND; AND PROVIDING FOR
2 EXPENDITURES FROM SUCH ACCOUNT.
3 TABLE OF CONTENTS
4 CHAPTER 1. SUNNY DAY FUND
5 SECTION 101. SHORT TITLE.
6 SECTION 102. FINDINGS AND DECLARATION OF POLICY.
7 SECTION 103. DEFINITIONS.
8 SECTION 104. OPERATION OF FUND.
9 CHAPTER 2. TAX STABILIZATION RESERVE FUND
10 SECTION 201. SHORT TITLE.
11 SECTION 202. LEGISLATIVE FINDINGS AND CONCLUSIONS.
12 SECTION 203. CREATION OF TAX STABILIZATION RESERVE FUND.
13 SECTION 204. FUNDING.
14 SECTION 205. DISPOSITION OF FUNDS.
15 CHAPTER 3. REPEALS AND EFFECTIVE DATE
16 SECTION 301. REPEALS.
17 SECTION 302. EFFECTIVE DATE.
18 The General Assembly of the Commonwealth of Pennsylvania
19 hereby enacts as follows:
20 CHAPTER 1
21 SUNNY DAY FUND
22 Section 1 101. Short title. <--
23 This act CHAPTER shall be known and may be cited as the Sunny <--
24 Day Fund Act.
25 Section 2 102. Findings and declaration of policy. <--
26 (a) Findings.--It is hereby determined and declared as a
27 matter of legislative finding and intent:
28 (1) That involuntary unemployment and its resulting
29 burden of indigency falls with crushing force upon the
30 unemployed worker and upon counties, cities, boroughs and
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1 other local governmental jurisdictions, reducing their tax
2 base and impairing their financial ability to support
3 education and other governmental services.
4 (2) That the problem of unemployment, and its
5 debilitating effects, has not been eliminated since the
6 increased level of the economy has not FULLY reached all <--
7 areas of this Commonwealth, nor has the economy of this
8 Commonwealth as a whole reached the level of the national
9 economy.
10 (3) That the present and prospective health, safety,
11 morals, right to OPPORTUNITY FOR gainful employment and <--
12 general welfare of the people of this Commonwealth requires <--
13 MAKES DESIRABLE, as a public purpose, the promotion and <--
14 development of large new industrial, manufacturing or
15 research and development enterprises.
16 (4) That while the Commonwealth has recently put in
17 place the best set of programs for small business available
18 in any state, there is no program or MAY NOT BE programs <--
19 available which has HAVE enough resources available to <--
20 attract firms with large numbers of new jobs available.
21 (b) Declaration of policy.--It is, therefore, declared to be
22 the policy of the Commonwealth to promote the health, safety,
23 morals, right to gainful employment and general welfare of the
24 inhabitants by the creation of a special account in the Treasury
25 Department, to be known as the Sunny Day Fund, which shall exist
26 for the public purpose of alleviating unemployment by attracting
27 large industrial, manufacturing or research and development
28 plants into this Commonwealth.
29 Section 3 103. Definitions. <--
30 The following words and phrases when used in this act CHAPTER <--
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1 shall have the meanings given to them in this section unless the
2 context clearly indicates otherwise:
3 "Fund." The Sunny Day Fund created by this act CHAPTER. <--
4 "Industrial enterprise." An enterprise other than a
5 mercantile, commercial or retail enterprise which, by virtue of
6 its size, requires substantial capital and which, by its nature,
7 will create substantial employment opportunities.
8 "Manufacturing enterprise." An enterprise which is engaged
9 in the giving of new shapes, new qualities or new combinations
10 to matter by the application of processes which will generate
11 substantial employment.
12 "Research and development enterprise." An enterprise for the
13 discovery of new and the refinement of known substances,
14 processes, products, theories and ideas, which will create
15 substantial employment opportunities.
16 Section 4 104. Operation of fund. <--
17 (a) Source of funds.--There is hereby created a special fund
18 in the Treasury Department to be known as the Sunny Day Fund.
19 Moneys to be deposited in the fund shall be appropriated by the
20 General Assembly, and any interest income derived from those
21 moneys shall be deposited into the fund. Moneys in the fund
22 shall remain until appropriated and expended as specified in
23 subsection (b).
24 (b) Use of funds.--Moneys in the fund shall be available, <--
25 upon appropriation, to the Governor and the Department of
26 Commerce in their efforts to attract industrial, manufacturing
27 or research and development enterprises to this Commonwealth, <--
28 UPON APPROVAL OF AN APPROPRIATION BILL BY A VOTE OF TWO-THIRDS
29 OF THE MEMBERS ELECTED TO THE SENATE AND THE HOUSE OF
30 REPRESENTATIVES. Whenever the Governor determines that money
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1 from this fund is necessary to attract a major enterprise to
2 this Commonwealth, he shall present a request for an
3 appropriation, along with the specifics of the total proposal
4 and such suggested ancillary and substantive legislation as may
5 be necessary, to the chairmen of the House and Senate
6 Appropriations Committees. The General Assembly may then
7 appropriate money from the fund in the manner it determines
8 necessary to accomplish the purposes set forth in the Governor's
9 proposal. Any money appropriated according to this section which
10 is then lapsed shall return to the fund.
11 Section 5. Appropriation. <--
12 The sum of $25,000,000 is hereby appropriated from the
13 General Fund to be deposited into the Sunny Day Fund to be used
14 for the purposes set forth in this act.
15 CHAPTER 2 <--
16 TAX STABILIZATION RESERVE FUND
17 SECTION 201. SHORT TITLE.
18 THIS CHAPTER SHALL BE KNOWN AND MAY BE CITED AS THE TAX
19 STABILIZATION RESERVE FUND ACT.
20 SECTION 202. LEGISLATIVE FINDINGS AND CONCLUSIONS.
21 (A) FINDINGS.--THE GENERAL ASSEMBLY OF THE COMMONWEALTH
22 HEREBY FINDS THAT:
23 (1) ECONOMIC UNCERTAINTY ARISING FROM NATIONAL AND
24 INTERNATIONAL EVENTS OVER WHICH THE COMMONWEALTH CANNOT
25 EXERCISE CONTROL IMPAIRS THE ABILITY OF THE COMMONWEALTH TO
26 ACCURATELY PREDICT ITS ANTICIPATED REVENUES AND EXPENDITURES.
27 (2) OVERESTIMATES OF REVENUES AND UNDERESTIMATES OF
28 EXPENDITURES CAN CREATE SERIOUS SHORT-TERM DEFICITS WHICH
29 GENERATE THE NEED FOR DEFICIENCY APPROPRIATIONS AND TAX
30 INCREASES.
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1 (3) FINANCING SHORT-TERM DEFICITS CREATED BY ECONOMIC
2 UNCERTAINTY IN THE PAST HAS LED TO EXCESSIVE TAX INCREASES
3 AND ERRATIC CHANGES IN TAX RATES AND POLICIES WHICH IMPAIRED
4 THE ATTRACTIVENESS OF THIS COMMONWEALTH AS A LOCATION FOR JOB
5 CREATION AND BUSINESS EXPANSION.
6 (4) RECURRING DEFICITS OCCURRING DURING ECONOMIC
7 DOWNTURNS CAN DAMAGE THE CREDITWORTHINESS OF THE COMMONWEALTH
8 AND INCREASE THE COST OF BORROWING FOR ESSENTIAL CAPITAL
9 PROJECTS.
10 (5) THE NEED TO COPE WITH PROBLEMS ARISING FROM THE
11 EFFECT OF ECONOMIC UNCERTAINTY HAS OFTEN CAUSED LENGTHY
12 DELAYS IN ADOPTING A BUDGET FOR THE COMMONWEALTH, CAUSED
13 CUTOFFS OF VITAL PUBLIC PROGRAMS AND ENDANGERED THE STABILITY
14 AND RELIABILITY OF VITAL PUBLIC SERVICES AND PROGRAMS.
15 (B) CONCLUSIONS.--THEREFORE, THE GENERAL ASSEMBLY CONCLUDES
16 THAT IT IS A VALID AND PROPER PUBLIC FUNCTION TO SET ASIDE A
17 PORTION OF COMMONWEALTH REVENUES INTO A TAX STABILIZATION
18 RESERVE FUND IN ORDER TO MINIMIZE FUTURE REVENUE SHORTFALLS AND
19 DEFICITS, PROVIDE GREATER CONTINUITY AND PREDICTABILITY IN THE
20 FUNDING OF VITAL GOVERNMENT SERVICES AND MINIMIZE THE NEED TO
21 INCREASE TAXES TO BALANCE THE BUDGET OF THE COMMONWEALTH DURING
22 PERIODS OF ECONOMIC DISTRESS.
23 SECTION 203. CREATION OF TAX STABILIZATION RESERVE FUND.
24 THERE IS HEREBY ESTABLISHED A SPECIAL FUND TO BE KNOWN AS THE
25 TAX STABILIZATION RESERVE FUND.
26 SECTION 204. FUNDING.
27 (A) APPROPRIATED FUNDS.--THE GENERAL ASSEMBLY MAY AT ANY
28 TIME PROVIDE ADDITIONAL AMOUNTS FROM ANY FUNDS AVAILABLE TO THIS
29 COMMONWEALTH AS AN APPROPRIATION TO THE TAX STABILIZATION
30 RESERVE FUND.
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1 (B) INTENT.--IT IS HEREBY DECLARED AS THE INTENT AND GOAL OF
2 THE GENERAL ASSEMBLY TO CREATE A STABILIZATION RESERVE IN AN
3 EVENTUAL AMOUNT NOT TO EXCEED 3% OF THE ESTIMATED REVENUES OF
4 THE GENERAL FUND OF THE COMMONWEALTH.
5 SECTION 205. DISPOSITION OF FUNDS.
6 (A) APPROPRIATION.--WHENEVER THE GOVERNOR DETERMINES THAT
7 MONEYS FROM THIS FUND ARE NECESSARY TO MEET EMERGENCIES
8 INVOLVING THE HEALTH, SAFETY OR WELFARE OF THE CITIZENS OF THIS
9 COMMONWEALTH, OR TO COUNTERBALANCE DOWNTURNS OF THE ECONOMY
10 WHICH RESULT IN SIGNIFICANT UNANTICIPATED REVENUE SHORTFALLS, HE
11 SHALL PRESENT A REQUEST FOR AN APPROPRIATION ALONG WITH THE
12 SPECIFICS OF THE PROPOSAL AND SUCH SUGGESTED ANCILLARY AND
13 SUBSTANTIVE LEGISLATION AS MAY BE NECESSARY TO THE CHAIRMEN OF
14 THE SENATE AND HOUSE APPROPRIATIONS COMMITTEES. THE GENERAL
15 ASSEMBLY MAY THEN THROUGH APPROVAL OF A SEPARATE APPROPRIATION
16 BILL BY A VOTE OF TWO-THIRDS OF THE MEMBERS ELECTED TO THE
17 SENATE AND THE HOUSE OF REPRESENTATIVES APPROPRIATE MONEY FROM
18 THE FUND TO MEET THE NEEDS IDENTIFIED IN THE GOVERNOR'S
19 PROPOSAL. ANY MONEY APPROPRIATED ACCORDING TO THIS SECTION WHICH
20 HAS THEN LAPSED SHALL BE RETURNED TO THE FUND.
21 (B) PURPOSE.--IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT
22 THESE FUNDS BE APPROPRIATED ONLY WHEN THE EMERGENCY OR DOWNTURN
23 IN THE ECONOMY CANNOT BE DEALT WITH THROUGH THE NORMAL BUDGET
24 PROCESS AND THAT THE MONEYS IN THE TAX STABILIZATION RESERVE
25 FUND NOT BE USED TO BEGIN NEW PROGRAMS BUT PROVIDE FOR THE
26 CONTINUATION OF VITAL PUBLIC PROGRAMS IN DANGER OF BEING CUT OFF
27 DUE TO FINANCIAL PROBLEMS RESULTING FROM THE ECONOMY.
28 CHAPTER 3
29 REPEALS AND EFFECTIVE DATE
30 SECTION 301. REPEALS.
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1 ALL ACTS AND PARTS OF ACTS ARE REPEALED INSOFAR AS THEY ARE
2 INCONSISTENT WITH THIS ACT.
3 Section 6 5 302. Effective date. <--
4 This act shall take effect immediately.
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