GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

H	1 

HOUSE BILL 854

Short Title:  Fiscal Trends Permanent Study.	(Public)

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Sponsors: Representatives Wilkins; Alexander, Church, R. Hunter, Hurley, Miner, Pate, and Ramsey.

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Referred to:  Finance.

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April 12, 1995

A BILL TO BE ENTITLED
AN ACT TO ESTABLISH A PERMANENT STATUTORY STUDY COMMISSION ON FISCAL TRENDS.
The General Assembly of North Carolina enacts:
Section 1.  Chapter 120 of the General Statutes is amended by adding a new Article to read:
"ARTICLE 13C.
"Joint Legislative Fiscal Trends and Reform Commission.
"§ 120-84.13.  Purpose.
The Joint Legislative Fiscal Trends and Reform Commission is established.  The Commission shall identify trends affecting the fiscal resources of the State and its local governments.  It shall also review the expenditures of the State and identify trends that will impact upon these expenditures.
"§ 120-84.14.  Membership.
The Commission shall consist of 22 members to be appointed as follows:
(1)	Eight members of the Senate appointed by the President Pro Tempore of the Senate, one of whom shall be designated cochair.
(2)	Three public members appointed by the President Pro Tempore of the Senate.
(3)	Eight members of the House of Representatives appointed by the Speaker of the House of Representatives, one of whom shall be designated cochair.
(4)	Three public members appointed by the Speaker of the House of Representatives.
In making the appointments, the President Pro Tempore of the Senate and the Speaker of the House of Representatives shall attempt to select members who are representative of all North Carolinians, including representatives of business and industry, professionals, local governments, major political parties, educators, ethnic groups, environmental advocates, low-income citizens, and consumers.
Members shall serve for two-year terms beginning on the convening of the General Assembly in each odd-numbered year; provided, however, the terms of initial members shall begin on appointment and end on the day of the convening of the 1997 General Assembly.  Members shall not be disqualified from completing a term of service on the Commission because they fail to run or are defeated for reelection.  Resignation or removal from the General Assembly shall constitute resignation or removal from membership on the Commission.
Vacancies on the Commission shall be filled by the same appointing officer who made the original appointments.
"§ 120-84.15.  Powers and duties.
The Commission shall have the following powers and duties:
(1)	To review long-term fiscal trends and to analyze the impact of these trends on the State budget.
(2)	To identify the factors that have contributed to the financial problems of the State and recommend measures to avoid a recurrence of those problems to the extent they are within the control of the State of North Carolina.
(3)	To monitor the State budget reform measures.
(4)	To analyze options to address the effect on the State budget of federal legislative and judicial mandates.
(5)	To review the condition of programs directed at ensuring an adequate workforce for the 1990s.
(6)	To analyze options to address future General Fund budget shortfalls.
(7)	To study the feasibility of modifying the State's accounting practices to improve the State's balance sheet by treating as accrued (i) sales tax proceeds that have been collected on behalf of the State by merchants but have not yet been remitted and (ii) other tax proceeds that have been collected on behalf of the State but have not yet been remitted.
(8)	To review the State's needs for changes in the revenue and budget structure to meet the needs of the State over the long term.
(9)	To make a comprehensive review of the State and local tax system, particularly in light of future economic trends that may affect revenues generated by existing taxes.
(10)	To recommend proposals to enhance the State's revenue position, adapt the State tax structure to changes in the economy, avoid placing undue tax burdens on any segment of the population, and preserve the positive impact of the tax structure on the economic future of the State.
(11)	To examine in detail the trends affecting local revenue sources, including intergovernmental revenue and local expenditure demands.
(12)	To review the fiscal relationship between the State and its local governments by examining State and local government revenue sources and the allocation of responsibility between the State and its local governments for financing and performing government services.  In its work pursuant to this subdivision, the Commission shall examine:
a.	Whether local government tax sharing and local government tax reimbursements should be financed by appropriation or by earmarking.
b.	Whether the State should provide local governments with additional revenue options.
c.	Whether a more adequate and dependable means of financing State and local government services should be devised.
d.	Whether State and local responsibilities for providing government services should be reallocated.
e.	How the fiscal relationship between the State and local governments, particularly the lack of uniform tax rates that results from local option taxes, affects economic development.
f.	The effectiveness of the Local Government Fiscal Information Act, Article 6D of Chapter 120 of the General Statutes.
g.	How the timing of the State's budget process affects the ability of local governments to comply with the deadlines imposed in the Local Government Budget and Fiscal Control Act.
(13)	To exercise all the powers provided under the provisions of G.S. 120-19 through G.S. 120-19.4.
"§ 120-84.16.  Reports to the General Assembly.
The Commission shall report as needed to the General Assembly.  A report must contain findings, recommendations, and policy alternatives which may be beneficial to State and local governments.
"§ 120-84.17.  Compensation and expenses of Commission members.
Members of the Commission shall serve without pay but shall receive per diem and subsistence in accordance with G.S. 138-5, 138-6, or 120-3.1, as appropriate.  Upon approval of the Legislative Services Commission, the facilities of the State Legislative Building and any other State office building used by the General Assembly shall be available to the Commission for its use.
"§ 120-84.18.  Commission staffing.
Upon approval of the Legislative Services Commission, the Commission may use professional and clerical staff of the General Assembly.  The expenses of employment of the clerical staff shall be borne by the Commission.  Upon approval of the Legislative Services Commission, the Commission may contract for consultant services as provided by G.S. 120-32.02."
Sec. 2.  There is allocated from the funds appropriated to the General Assembly for the Joint Legislative Fiscal Trends and Reform Commission the sum of fifty thousand dollars ($50,000) for the 1995-96 fiscal year and the sum of fifty thousand dollars ($50,000) for the 1996-97 fiscal year.
Sec. 3.  This act becomes effective July 1, 1995.