Bill Text

Bill Information


Add To My Favorites | print page

SB-1160 State fiscal analysis. (2009-2010)

SHARE THIS: share this bill in Facebook share this bill in Twitter
SB1160:v96#DOCUMENT

Amended  IN  Assembly  August 02, 2010
Amended  IN  Senate  June 02, 2010
Amended  IN  Senate  April 05, 2010

CALIFORNIA LEGISLATURE— 2009–2010 REGULAR SESSION

Senate Bill
No. 1160

Introduced  by  Senator Dutton

February 18, 2010

An act to add Sections 9143.5 and 13305.5 to the Government Code, relating to state fiscal analysis.


LEGISLATIVE COUNSEL'S DIGEST


SB 1160, as amended, Dutton. State fiscal analysis.
Existing law requires the Legislative Analyst and the Department of Finance to provide the Legislature with specified fiscal analyses of matters affecting state finances, including the annual state budget.
This bill would require the Legislative Analyst and the department, to the extent that any fiscal estimate of the annual state budget involves a change in state tax law, to estimate, except as specified, the statewide economic impact of the change, using a dynamic economic analysis that includes probable behavioral responses of taxpayers, businesses, and other residents of the state, and the impact of the change on state spending reductions, including reductions in education spending.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 9143.5 is added to the Government Code, to read:

9143.5.
 To the extent that any fiscal estimate prepared by the Legislative Analyst regarding the annual state budget involves one or more proposed changes in state tax law, including, but not limited to, new taxes, tax rate changes, new credits, deductions, exclusions, or exemptions, or changes to credits, deductions, exclusions, or exemptions, the Legislative Analyst shall estimate the statewide economic impact of the change or changes, using dynamic economic analysis that takes into account probable behavioral responses of taxpayers, businesses, and other residents of the state, except where it is unreasonable to do so. The Legislative Analyst shall also estimate the economic impact of the state spending reductions that would be necessitated by the proposed state tax reduction, in accordance with the constitutional requirement that the state enact a balanced budget each year. The Legislative Analyst’s estimate of the economic impact of spending reductions shall identify the reductions in state education spending required by the tax reduction proposal, and the long-term effect of reduced education spending on the growth of the state domestic product. The requirement set forth in this section applies only to a proposed change in state tax law determined by the Legislative Analyst, pursuant to a static fiscal estimate, to have a fiscal impact in excess of ten million dollars ($10,000,000) in any one fiscal year, except where the Legislative Analyst has determined and reported to the legislature findings to support that it is unreasonable to do so.

SEC. 2.

 Section 13305.5 is added to the Government Code, to read:

13305.5.
 To the extent that any fiscal estimate prepared by the Department of Finance regarding the annual state budget involves one or more proposed changes in state tax law, including, but not limited to, new taxes, tax rate changes, new credits, deductions, exclusions, or exemptions, or changes to credits, deductions, exclusions, or exemptions, the department shall estimate the statewide economic impact of the change or changes, using dynamic economic analysis that takes into account probable behavioral responses of taxpayers, businesses, and other residents of the state, except where it is unreasonable to do so. The department shall also estimate the economic impact of the state spending reductions that would be necessitated by the proposed state tax reduction, in accordance with the constitutional requirement that the state enact a balanced budget each year. The department’s estimate of the economic impact of spending reductions shall identify the reductions in state education spending required by the tax reduction proposal, and the long-term effect of reduced education spending on the growth of the state domestic product. The requirement set forth in this section applies only to a proposed change in state tax law determined by the department, pursuant to a static fiscal estimate, to have a fiscal impact in excess of ten million dollars ($10,000,000) in any one fiscal year, except where the department has determined and reported to the Legislature findings to support that it is unreasonable to do so.