SB 699 — Revenue reserves & budgetary amendments; commitment of funds for Revenue Reserve Fund.

SESSION SENATEHOUSE SUBSTITUTE 24107600D24108084D SENATE BILL NO.

699 AMENDMENT IN THE NATURE OF A SUBSTITUTE (Proposed by the SenateHouse Committee on Finance and Appropriations on February 12,21, 2024) (Patron Prior to Substitute––Senator Lucas) A BILL to amend and reenact § 2.2-1831.3 of the Code of Virginia, relating to revenue reserves and Be it enacted by the General Assembly of Virginia:

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 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 E 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 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 certifTed 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 E 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 collected in the most recently ended fiscal year multiplied by the difference between the annualnues 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 yeUrs immediately preceding the most recently ended fiscal year.

Any such additional deposits to the Bund shall be included in the Governor's budget recommendations submitted to the General Assembly in the accordance with § 2.2-1503 for the fiscal year in which the deposit is to be made is at least five percent greater than the actual general fund revenues for the immediately preceding fiscal year.

T 36 C.

The State Comptroller shall draw such warrants as appropriated and the State Treasurer shall 37 deposit such warrants into the Fund.

No amounts shall be withdrawn from the Fund except pursuant to / 38 appropriations made by the General Assembly in accordance with § 2.2-1830.

However, if any amouTts 39 accrue, such as through interest or dividends, to the credit of the Fund in excess of the limitUtion the general fund either from the Fund or from the Revenue Reserve Fund created pursuant to be paid into § 2.2-1831.2.

T D.

For the purposes of the Comptroller's preliminary and final annual reports as required byE § 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.

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.

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 yeSr.year.

The Auditorinto of Public Accounts shall, at the sameFund time, provide his report on the amount that could6be paid permitted.und and the amount by which the amount in the Fund is less than the maximum amountamountuldHbe 9paid B.permitted.

WheneverB. 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 SB699S1 2 of 2 § 10.1-2128, for deposit into the Fund.

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 § 10.1-2128, for deposit into the Fund.

E 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 purposesS pursuantappropriation toact.to the provisions of subsection B.

A schedule of deposits may be provided in theUhe appropriation2. act.

2.If the Governor includes in "The Budget Bill" pursuant to § 2.2-1509 a recommendation to transfer amounts in the Fund that are in excess of the limitation calculated by the Auditor of Public Accounts as provided in subsection F, he shall also identify in such recommendation the correspSnding purpose and proposed use of any amounts so transferred within the corresponding items in such BTdget BilD.

If the Governor includes in "The Budget Bill" pursuant to § 2.2-1509 a recommendation to transfer amounts in the Fund that are in excess of the limitation calculated by the Auditor of Public Accounts as provided in subsection F, he shall also identify in such recommendation the corresponding purpose and proposed use of any amounts so transferred within the corresponding items in such Budget Bill.

D.

No withdrawal shall be made from the Fund except in accordance 36 with § 2.2-1831.4.

T 37 E.

For the purposes of the Comptroller's preliminary and final annual reports as required by / 38 § 2.2-813, all balances remaining in the Fund on June 30 of each fiscal year shall be considered to be a 39 portion of the fund balance of the general fund of the state treasury.

However, if any amounts accrue,Tccrue, 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 generalgEneraled by fund either from the Fund or from the Revenue Stabilization Fund created pursuant to § 2.2-1828.

At no time shall the combined amount in the Fund and the Revenue Stabilization Fund created pursuant to § 2.2-1828 exceed 15 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 yearsyeaG. immediately preceding.

G.

The State Comptroller shall, pursuant to § 2.2-813, present such amount as "Amount Required for S Nonrecurring Expenditures from Excess Revenue Reserve Fund" on the assigned fund balance.

B 2.

If a transfer is required pursuant to subdivision 1 and the Revenue Stabilization Fund isis9not not in excess of the limitation set by Article X, Section 8, of the Constitution of Virginia, before such transfer is made, the StateStatH Comptroller shall first transfer funds from the Fund to the Revenue Stabilization Fund until the requirements of subsection F and § 2.2-1829 are1re met.