130th Ohio General Assembly
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H. B. No. 476  As Introduced
As Introduced

129th General Assembly
Regular Session
2011-2012
H. B. No. 476


Representatives Ramos, Pillich 

Cosponsors: Representatives Murray, Hagan, R., Driehaus, Antonio, Boyd, Yuko, Reece, Phillips, Fende, Fedor, Lundy, Celeste, Winburn, Foley, Gerberry, Budish, Heard, Szollosi, Carney, Sykes, Slesnick 



A BILL
To amend sections 131.43 and 131.44 and enact sections 131.441 and 131.442 of the Revised Code to create the Local Government Job Fund in the state treasury to provide funding to local governments for job creation, maintenance, and retention programs; to require the Director of Budget and Management, in any year that the state unemployment rate exceeds six percent, to transfer the amount, if any, that would be transferred to the Budget Stabilization Fund or the Income Tax Reduction Fund to the Local Government Job Fund; and to amend the version of section 131.44 of the Revised Code that is scheduled to take effect June 1, 2013, to continue the provisions of this act on and after that effective date.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 131.43 and 131.44 be amended and sections 131.441 and 131.442 of the Revised Code be enacted to read as follows:
Sec. 131.43.  There is hereby created in the state treasury the budget stabilization fund. It In years when the state unemployment rate, as measured by the director of job and family services, is less than six per cent, it is the intent of the general assembly to maintain an amount of money in the budget stabilization fund that amounts to approximately five per cent of the general revenue fund revenues for the preceding fiscal year. The governor shall include in the state budget he the governor submits to the general assembly under section 107.03 of the Revised Code proposals for transfers between the general revenue fund and the budget stabilization fund for the ensuing fiscal biennium. The balance in the fund may be combined with the balance in the general revenue fund for purposes of cash management.
Sec. 131.44.  (A) As used in this section:
(1) "Surplus revenue" means the excess, if any, of the total fund balance over the required year-end balance.
(2) "Total fund balance" means the sum of the unencumbered balance in the general revenue fund on the last day of the preceding fiscal year plus the balance in the budget stabilization fund.
(3) "Required year-end balance" means the sum of the following:
(a) Five per cent of the general revenue fund revenues for the preceding fiscal year;
(b) "Ending fund balance," which means one-half of one per cent of general revenue fund revenues for the preceding fiscal year;
(c) "Carryover balance," which means, with respect to a fiscal biennium, the excess, if any, of the estimated general revenue fund appropriation and transfer requirement for the second fiscal year of the biennium over the estimated general revenue fund revenue for that fiscal year;
(d) "Capital appropriation reserve," which means the amount, if any, of general revenue fund capital appropriations made for the current biennium that the director of budget and management has determined will be encumbered or disbursed;
(e) "Income tax reduction impact reserve," which means an amount equal to the reduction projected by the director of budget and management in income tax revenue in the current fiscal year attributable to the previous reduction in the income tax rate made by the tax commissioner pursuant to division (B) of section 5747.02 of the Revised Code.
(4) "Estimated general revenue fund appropriation and transfer requirement" means the most recent adjusted appropriations made by the general assembly from the general revenue fund and includes both of the following:
(a) Appropriations made and transfers of appropriations from the first fiscal year to the second fiscal year of the biennium in provisions of acts of the general assembly signed by the governor but not yet effective;
(b) Transfers of appropriation appropriations from the first fiscal year to the second fiscal year of the biennium approved by the controlling board.
(5) "Estimated general revenue fund revenue" means the most recent such estimate available to the director of budget and management.
(B)(1) Not later than the thirty-first day of July each year, the director of budget and management shall determine the surplus revenue that existed on the preceding thirtieth day of June and transfer from the general revenue fund, to the extent of the unobligated, unencumbered balance on the preceding thirtieth day of June in excess of one-half of one per cent of the general revenue fund revenues in the preceding fiscal year, the following:
(a) In years when the state unemployment rate, using the most recently calculated annual rate as measured by the director of job and family services, is six per cent or greater, to the local government job fund created in section 131.441 of the Revised Code an amount equal to the surplus revenue.
(b) In years when division (B)(1)(a) of this section does not apply, as follows:
(i) First, to the budget stabilization fund, any amount necessary for the balance of the budget stabilization fund to equal five per cent of the general revenue fund revenues of the preceding fiscal year;
(b)(ii) Then, to the income tax reduction fund, which is hereby created in the state treasury, an amount equal to the surplus revenue.
(2) Not later than the thirty-first day of July each year, the director shall determine the percentage that the balance in the income tax reduction fund is of the amount of revenue that the director estimates will be received from the tax levied under section 5747.02 of the Revised Code in the current fiscal year without regard to any reduction under division (B) of that section. If that percentage exceeds thirty-five one hundredths of one per cent, the director shall certify the percentage to the tax commissioner not later than the thirty-first day of July.
(C) The director of budget and management shall transfer money in the income tax reduction fund to the general revenue fund, the local government fund, and the public library fund as necessary to offset revenue reductions resulting from the reductions in taxes required under division (B) of section 5747.02 of the Revised Code in the respective amounts and percentages prescribed by division (A) of section 5747.03 and divisions (A) and (B) of section 131.51 of the Revised Code as if the amount transferred had been collected as taxes under Chapter 5747. of the Revised Code. If no reductions in taxes are made under that division that affect revenue received in the current fiscal year, the director shall not transfer money from the income tax reduction fund to the general revenue fund, the local government fund, and the public library fund.
Sec. 131.441.  There is hereby created in the state treasury the local government job fund. The fund shall consist of transfers made to the fund under section 131.44 of the Revised Code. Interest earned on money in the fund shall be credited to the fund.
Money in the fund shall be used to fund job creation, maintenance, and retention programs and for other purposes related to increasing employment in the state.
Sec. 131.442.  Not later than thirty days after a transfer to the local government job fund is made under section 131.44 of the Revised Code, the director of budget and management shall transfer the following:
(A) To the undivided local government fund of each county, an amount from the local government job fund proportional to the amount distributed to each county from the local government fund under division (B) of section 5747.50 of the Revised Code;
(B) To the general fund of each municipal corporation that receives money from the local government fund, an amount from the local government job fund proportional to the amount distributed to each municipal corporation from the local government fund under division (C) of section 5747.50 of the Revised Code.
Section 2.  That existing sections 131.43 and 131.44 of the Revised Code are hereby repealed.
Section 3.  That the version of section 131.44 of the Revised Code that is scheduled to take effect on June 1, 2013, be amended to read as follows:
Sec. 131.44.  (A) As used in this section:
(1) "Surplus revenue" means the excess, if any, of the total fund balance over the required year-end balance.
(2) "Total fund balance" means the sum of the unencumbered balance in the general revenue fund on the last day of the preceding fiscal year plus the balance in the budget stabilization fund.
(3) "Required year-end balance" means the sum of the following:
(a) Five per cent of the general revenue fund revenues for the preceding fiscal year;
(b) "Ending fund balance," which means one-half of one per cent of general revenue fund revenues for the preceding fiscal year;
(c) "Carryover balance," which means, with respect to a fiscal biennium, the excess, if any, of the estimated general revenue fund appropriation and transfer requirement for the second fiscal year of the biennium over the estimated general revenue fund revenue for that fiscal year;
(d) "Capital appropriation reserve," which means the amount, if any, of general revenue fund capital appropriations made for the current biennium that the director of budget and management has determined will be encumbered or disbursed;
(e) "Income tax reduction impact reserve," which means an amount equal to the reduction projected by the director of budget and management in income tax revenue in the current fiscal year attributable to the previous reduction in the income tax rate made by the tax commissioner pursuant to division (B) of section 5747.02 of the Revised Code.
(4) "Estimated general revenue fund appropriation and transfer requirement" means the most recent adjusted appropriations made by the general assembly from the general revenue fund and includes both of the following:
(a) Appropriations made and transfers of appropriations from the first fiscal year to the second fiscal year of the biennium in provisions of acts of the general assembly signed by the governor but not yet effective;
(b) Transfers of appropriations from the first fiscal year to the second fiscal year of the biennium approved by the controlling board.
(5) "Estimated general revenue fund revenue" means the most recent such estimate available to the director of budget and management.
(B)(1) Not later than the thirty-first day of July each year, the director of budget and management shall determine the surplus revenue that existed on the preceding thirtieth day of June and transfer from the general revenue fund, to the extent of the unobligated, unencumbered balance on the preceding thirtieth day of June in excess of one-half of one per cent of the general revenue fund revenues in the preceding fiscal year, the following:
(a) In years when the state unemployment rate, using the most recently calculated annual rate as measured by the director of job and family services, is six per cent or greater, to the local government job fund created in section 131.441 of the Revised Code an amount equal to the surplus revenue.
(b) In years when division (B)(1)(a) of this section does not apply, as follows:
(i) First, to the budget stabilization fund, any amount necessary for the balance of the budget stabilization fund to equal five per cent of the general revenue fund revenues of the preceding fiscal year;
(b)(ii) Then, to the income tax reduction fund, which is hereby created in the state treasury, an amount equal to the surplus revenue.
(2) Not later than the thirty-first day of July each year, the director shall determine the percentage that the balance in the income tax reduction fund is of the amount of revenue that the director estimates will be received from the tax levied under section 5747.02 of the Revised Code in the current fiscal year without regard to any reduction under division (B) of that section. If that percentage exceeds thirty-five one hundredths of one per cent, the director shall certify the percentage to the tax commissioner not later than the thirty-first day of July.
(C) The director of budget and management shall transfer money in the income tax reduction fund to the general revenue fund, the local government fund, and the public library fund as necessary to offset revenue reductions resulting from the reductions in taxes required under division (B) of section 5747.02 of the Revised Code in the respective amounts and percentages prescribed by division (A) of section 5747.03 and divisions (B) and (C) of section 131.51 of the Revised Code as if the amount transferred had been collected as taxes under Chapter 5747. of the Revised Code. If no reductions in taxes are made under that division that affect revenue received in the current fiscal year, the director shall not transfer money from the income tax reduction fund to the general revenue fund, the local government fund, and the public library fund.
Section 4.  That the existing version of section 131.44 of the Revised Code that is scheduled to take effect June 1, 2013, is hereby repealed.
Section 5.  Sections 3 and 4 of this act shall take effect June 1, 2013.
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