Report Title:

Constitution; Projected Excess Revenues

Description:

Requires that portions of estimated increases in general fund revenues be returned to taxpayers as a tax refund or tax credit and be deposited into the emergency and budget reserve fund.  Sets 7% estimated increase for two consecutive years as the threshold for the disposition.  (HB993 HD2)

HOUSE OF REPRESENTATIVES	H.B. NO.	993
TWENTY-FIFTH LEGISLATURE, 2009		H.D. 2
STATE OF HAWAII

A BILL FOR AN ACT

PROPOSING AN AMENDMENT TO THE HAWAII CONSTITUTION, RELATING TO THE DISPOSITION OF PROJECTED EXCESS REVENUES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The purpose of this Act is to propose an amendment to the Hawaii Constitution to require the legislature to return a specific amount of revenue as a tax refund or tax credit to taxpayers and to deposit a specific amount into the emergency and budget reserve fund whenever general fund revenue  estimates exceed seven percent growth for two consecutive years.

     SECTION 2.  Article VII of the Hawaii Constitution is amended by adding a new section to be appropriately designated and to read as follows:

     "Section    . In any regular session during which the council on revenues estimates, prior to adjournment sine die, that for the second consecutive year, general fund revenues in the current fiscal year will exceed the general fund revenues collected in the prior fiscal year by at least seven percent, the legislature shall set aside:

1. An amount equal to one percent of general fund revenues collected in the prior fiscal year as a tax refund or tax credit to the taxpayers of the State, as provided by law; and

2. Moneys exceeding seven percent of the amount by which revenues in the current fiscal year are estimated to exceed revenues in the prior fiscal year, for deposit into an emergency and budget reserve fund as may be provided by law; provided that no deposit shall be made if the balance in the emergency and budget reserve fund is equal to or greater than ___ percent of general fund expenditures for the prior fiscal year."

    SECTION 3.  The question to be printed on the ballot shall be as follows:

    "Shall the legislature, during any regular session in which the general fund revenues are estimated, for the second consecutive year, to exceed by at least seven percent the general fund revenues collected in the prior fiscal year:

     (1)  Set aside one percent of the excess revenues as a tax refund or tax credit to taxpayers; and

     (2)  Deposit into an emergency and budget reserve fund the  excess revenues above seven percent?"

    SECTION 4.  New constitutional material is underscored.

     SECTION 5.  This amendment shall take effect upon compliance with article XVII, section 3, of the Hawaii Constitution.