Second Regular Session
              Sixty-eighth General Assembly
                    STATE OF COLORADO
                                                 INTRODUCED
                                                           
                                                           
 LLS NO. 12-0412.01 Bob Lackner x4350    HOUSE BILL 12-1039
                    HOUSE SPONSORSHIP
 Hullinghorst,  Ferrandino, Ryden, Kerr A.
 
                   SENATE SPONSORSHIP
 (None),
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 House Committees
 Senate Committees
 
 
 Finance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                         A BILL FOR AN ACT
       Concerning the adoption of pay-as-you-go requirements for
            certain bills with specified impacts on the state
            budget.
       
       
                           Bill Summary
       
            (Note: This summary applies to this bill as introduced and does
       not reflect any amendments that may be subsequently adopted. If this bill
       passes third reading in the house of introduction, a bill summary that
       applies to the reengrossed version of this bill will be available at
       http://www.leg.state.co.us/billsummaries.)
       
            For each regular or special session of the general assembly, prior
       to the passage of the long appropriation bill, the bill prohibits the
       appropriations committee in either house from favorably passing out a bill
       that requires a tax expenditure or that results in either a decrease in
       revenue to the state or an increase in general fund spending unless the bill
       either specifically identifies equivalent decreases in such expenditures or
       offsets to the general fund or specifically identifies sufficient increases in
       revenue for the next state fiscal year and for any other fiscal year that new
       tax expenditures or changes in tax expenditures would be implemented.
       The bill defines "tax expenditure" to mean a deduction from taxable
       income, tax credit, tax exemption, the lowering of a tax rate, the
       elimination of a tax, or the elimination or reduction of a fee.
       
       
       
       Be it enacted by the General Assembly of the State of Colorado:
            SECTION 1.  In Colorado Revised Statutes, add 24-75-114 as
       follows:
            24-75-114.  Pay-as-you-go requirements - restrictions on bill
       passage by appropriations committees - specified bills with impact on
       state budget - regular or special legislative sessions - declaration -
       definitions. (1)  The general assembly hereby finds, determines,
       and declares that:
            (a)  The general assembly must be ever mindful that the
       people of the state regularly face significant financial
       burdens, particularly in challenging economic times. With this
       in mind, and with a firm hold on its constitutional
       responsibilities, the general assembly must ensure that the
       people's money is spent wisely.
            (b)  In order to live up to its constitutional
       responsibilities, the general assembly intends to adopt
       "pay-as-you-go" rules. These rules will guarantee that,
       whenever a new tax expenditure is made, a source of funding for
       that tax expenditure will be identified. As the people of the
       state balance their own checkbooks in this manner, so too
       should the state follow these same principles in balancing its
       own books.
            (c)  The people of the state demand and deserve full
       transparency from their government. Ultimately, it is the
       people's money that is at stake. The people of the state need and
       deserve the opportunity to provide input on state tax
       expenditures based upon their own needs and priorities.
            (2)  For each regular or special session of the general
       assembly, prior to the passage of the annual general
       appropriation act, no bill that requires a tax expenditure or
       that results in either a decrease in revenue to the state or an
       increase in general fund spending may be favorably passed by
       the appropriations committee of either house to the full
       chamber of such house for consideration on second reading
       unless the bill either specifically identifies equivalent
       decreases in such expenditures or offsets to the general fund or
       specifically identifies equivalent increases in revenue for the
       next state fiscal year and for any other fiscal year that new
       tax expenditures or changes in tax expenditures would be
       implemented so that the bill does not impact the state budget.
       For purposes of this section, "tax expenditure" means, without
       limitation, a deduction from taxable income, tax credit, tax
       exemption, the lowering of a tax rate, the elimination of a tax,
       or the elimination or reduction of a fee.
            SECTION 2.  Safety clause. The general assembly hereby finds,
       determines, and declares that this act is necessary for the immediate
       preservation of the public peace, health, and safety.