An Act To Create the Taxpayer Bill of Rights Transmitted to the Clerk of the 122nd Maine Legislature by the Secretary of State on March 15,2006 and ordered printed. PrUlleu on ft'l:yded papt!f 17/~ /J7.17l~
Maine Legislature, Session 122, LD 2075
Amends: 5 MRSA §1507, 5 MRSA §1511, 5 MRSA §1513, 5 MRSA §1517, 36 MRSA §3321

Legislative Document 
No. 2075 
LB. 1 
House of Representatives, March 16,2006 
An Act To Create the Taxpayer Bill of Rights 
Transmitted to the Clerk of the 122nd Maine Legislature by the Secretary of State on 
March 15,2006 and ordered printed. 
PrUlleu on ft'l:yded papt!f 
'17/~ /J7.17l~ 
MILLICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 5 MRSA §1507, next to last 1[, as enacted by PL 1997, c. 
24, Pt. C, §2, is repealed. 
Sec. 2. 5 MRSA §1511, as amended by PL 2003, c. 451, Pt. X, 
§1, is repealed. 
Sec. 3. 5 MRSA §1513, as amended by PL 2003, c. 451, Pt. X, 
§§2 to 4, is repealed. 
Sec. 4. 5 MRSA §1517, as amended by PL 2003, c. 451, Pt. X, 
§6, is repealed. 
Sec. 5. 5 MRSA §§1522 and 1523 are enacted to read: 
§1522. 
Maine Budget Stabilization Fund 
1. 
Establishment. 
The 
Maine 
Budget Stabilization Fund, 
referred to in this section as "the fund," is established and 
must be administered for the purposes identified in this section. 
2. 
Transfers 
to 
fund; 
limits. 
The 
fund 
may 
receive 
transfers by the State Controller of unappropriated surplus at 
the close of a fiscal year as provided in section 2045 and any 
QJ;;,her funds identified by law. 
The fund may not exceed 10% of 
the total General 
Fund 
revenues 
received in the 
immediately 
preceding fiscal year 
and 
may 
not 
lapse, 
but 
remains 
in 
a 
continuing carrying account to carry out the purposes of this 
section. 
The limit at the close of a fiscal year is based on the 
total General Fund revenues received in the fiscal year being 
closed. 
3. 
Use of fund. 
The Legislature may authorize transfers, 
gp'propriations and allocations from the fund only to fund the 
costs of State Government up to the expenditure limit calculated 
under section 2044 in years when state revenues are less than the 
amount necessary to finance the level of expenditure permitted 
under section 2044. 
4. 
Investment of funds; proceeds. 
The money in the fund 
may be invested as provided by law, with the earnings credited to 
the fund. 
At the close of every month during which the fund is 
~t the 
10% 
limitation described in subsection 
2, 
the State 
Controller shall transfer the excess to the Tax Relief Reserve 
Fund established under section 2045. 
§1523. 
Maine Highway Budget Stabilization Fund 
1. 
Establishment. 
The Maine Highway Budget Stabilization 
Page l-LR3236(1) 
fJ!!lc;l~e..Le~r~d to 
l,u_t.1ti_~-tj&n as 
'~the fund." is established 
~must be administered for the purposes identified in this 
section. 
2. 
Tr~rs to 
fund; 
limits. 
The 
fund 
may 
receive 
~nsfers by the State Controller of unallocated Highway Fund 
surplus at the close of a fiscal year as provided in section 2046 
and any other funds identified by law. 
The fund may not exceed 
10% 
of 
the 
total 
Highway 
Fund 
revenues 
received 
in 
the 
immediately preceding fiscal year and may not lapse. but remains 
in a continuing carrying account to carry out the purposes of 
this section. 
The limit at the close of a fiscal year is based 
on the total Highway Fund revenues received in the fiscal year 
being closed. 
3. 
Use of fund. 
The Legislature may authorize transfers, 
appropriations and allocations from the fund only to fund the 
costs of the Highway Fund budget up to the expenditure limit 
calculated under section 2044 in years when Highway Fund revenues 
are less than the 
amount necessary to finance the level of 
expenditures permitted under section 2044. 
4. 
Ip.ve.&tJnent of fun~L_lt~ds. 
The money in the fund 
may be invested as provided by law with the earnings credited to 
the fund. 
At the close of every month during which the fund is 
at the 
10% 
limitation described in subsection 
2, 
the State 
Controller shall transfer the excess to the Highway Fund Reserve 
Fund established under section 2046. 
Sec. 6. 5 MRS A §1664, last " 
as enacted by PL 2003, c. 451, 
Pt. X, §8, is amended to read: 
The total General Fund appropriation for each fiscal year of 
the 
biennium 
in 
the 
Governor' s 
budget 
submission 
to 
the 
Legislature may not exceed the General Fund appropriation of the 
previous fiscal year multiplied by one plus the 
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~ha~-~e-~~~~~~~~~~F-~~F-~-aR&-9peFa~i9R population 
adjustment factor plus the inflation adjustment factor as those 
terms 
are 
defined 
in 
section 
2042, 
subsections 
and 
3, 
respectively. 
Sec. 7. 5 MRS A §1665, sub-§l, as amended by PL 2003, c. 451, 
Pt. X, §9, is further amended to read: 
1. 
Expenditure 
and 
appropriation 
requirements. 
On 
or 
before September 1st of the even-numbered years, all departments 
and other agencies of the State Government and corporations and 
associations receiving or desiring to receive state funds under 
the provisions of law shall prepare, in the manner prescribed by 
and on blanks furnished them by the State Budget Officer, and 
submit 
to 
the 
officer 
estimates 
of 
their 
expenditure 
and 
appropriation requirements for each fiscal year of the ensuing 
biennium contrasted with the corresponding figures of the last 
completed fiscal year and the estimated figures for the current 
fiscal 
year. 
The 
total 
General 
Fund 
appropriation 
requests 
submitted by each department and agency for each fiscal year may 
not exceed the General Fund appropriation of the previous fiscal 
year multiplied by one plus the 
aveFa~e-~-&a-l---pe-r~~--~Re9me 
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peFs9Ral-~~~~~~-F-a~e!!.-meaR6-~~-av&F-~-f9~-~~~F-i-G-F--l9 
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waiea-Qa~a-~6-~~~~~-~-~~~~~-~R-peF-&eRa~-~Re9me 
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S~a~es-~£~meR~-~~F-G&r-~~Fea~--e-f-~~&a:l-~&~&r-less 
~ae-pe£~eR~-~-~-~ae-G9Rs~meF-P£i€e-~~~~--~aa~-ealeRQaF 
yeaFT--~--p~Fp9ses-~--~ais-~~~--~G9Rs~eF-~~-~RQeH~ 
aas-~he-~~aR~~-as-~~-~~~-~~r-6e€~ieR-~--~~i-G-R-l 
inflation adjustment factor as defined in section 2042. 
The 
expenditure estimates saall !ID!§..t be classified to set forth the 
data by 
funds, 
organization units, 
character 
and objects of 
expenditure. 
The 
organization units 
may 
be 
subclassified by 
functions 
and 
activities, 
or 
in 
any 
other 
manner, 
at 
the 
discretion of the State Budget Officer. 
Sec. 8. 5 MRSA c.167 is enacted to read: 
CHAPTER 167 
THE TAXPAYERS' BILL OF RIGHTS 
§204l. 
ExpeAdjture and revenue requirements: construction of 
chapter 
The 
following 
provisions 
of 
this 
section 
apply. 
notwithstanding any other provision of law. 
1. 
E~nd.i..tllJ~.imit~tiQns. 
Annual 
state 
and 
local 
expenditures may not exceed the limits provided in this chapter. 
2. 
Revenue 
increas~s. 
An increase in revenue may only be 
adopted as provided in section 2043. 
3. 
Construction. 
It is the intent of the Legislature that 
this chapter be interpreted liberally to restrain excess growth 
of state and local government. 
§2042. 
Definitions 
As 
used 
in this 
chapter, 
unless 
the 
context otherwise 
indicates. the following terms have the following meanings. 
1. 
Election officer. 
"Election officer" means: 
A. 
In 
a 
statewide. 
county 
or 
municipal 
election. 
the 
municipal registrar of voters: or 
B. 
In an election by the voters of a local district that is 
not a municipality, 
the official with responsibility for 
managing the list of voters of the local district. 
2. 
Increase in revenue. 
"Increase in revenue" means any 
legislation. local ordinance or tax levy that causes a net gain 
in revenue and: 
A. 
Enacts a new tax or fee: 
B. 
Increases the rate or expands the base of an existing 
tax or fee: 
C. 
Reduces 
benefits 
or eligibility under 
the 
Business 
Equipment Tax Reimbursement program established in Title 36. 
chapter 915 without providing the Same level of benefits and 
eligibility under a comparable program or without providing 
a 
100% property tax exemption for property eligible for 
reimbursement under Title 36. chapter 915; 
D. 
Repeals or reduces any tax exemption, credit or refund; 
Q£ 
E. 
Extends an expiring tax or fee increase. 
3. 
Inflation 
aQjustment 
factgr. 
"Inflation 
adjustment 
factor" means the increase in the Consumer Price Index for the 
ffiQ.!it recently availabl_8 calendar year as calculated by the United 
States Department of Labor, Bureau of Labor Statistics. 
4. 
Local district. 
"Local district" means 
any county, 
municipality or other 
substate 
governmental 
entity with 
the 
authority to collect revenue. 
5. 
Pop~tion adiu,Jltment factor. 
"Population adjustment 
factor" means the increase or decrease in population for the 
preceding 
calendar 
year 
over 
the 
prior 
calendar 
year 
as 
determined annually by the Executive Department. State Planning 
Qffice statewide and for each municipality based on federal 
census estimates. 
6. 
Ouasi--governmental agency. 
"Quasi-governmental agency" 
means 
any 
separate 
legal 
entity 
for 
which 
the 
State 
is 
financially accountable and that is included in the financial 
statements of the State for financial reporting purposes under 
guidelines 
established 
by 
generally 
accepted 
accounting 
principles mandated by a governmental accounting standards board. 
7. Revenue. 
"Revenue" means taxes and fees collected by the 
State, a quasi-governmental agency or a local district pursuant 
to the statutes of the State, including those collected under 
Title 36, Part 2. 
It includes money received from the sale of 
goods and services only to the extent that the receipts exceed 
the cost of providing the goods or services. 
§2043. 
Approval of revenue increases 
1. 
Approval of increases. 
The following forms of approval 
are required to adopt an increase in revenue: 
A. 
The measure must be approved by a vote of 2/3 of all the 
members of each House of the Legislature or 2/3 of the 
members of the legislative body of a quasi-municipal agency 
or a local district; and 
B. 
Except as provided in subsection 2, the measure must be 
approved by a majority of the voters in the jurisdiction as 
described in subsection 3. 
2. 
E][cept.io-»_~. 
Voter 
approval 
under 
subsection 
1, 
paragraph B is not required if: 
A. 
Annual 
s~e~~~~'~~e is less 
than 
a~~~~ 
payments 
on 
genex:aL~J,igatiQn boW, 
re';juind 
;.a]llle .. ':.s 
related to pensions and final court judgments; 
Il~.I:l~TIl~~L!LiL_a~~fllergency tax and the pr')'{isin.s -;,f 
section 2049 are followed; or 
C, 
The increase in revenue applies to a guasi-';1Q'lernme::.ta: 
agency that does not have a body of voters. 
For the purposes of this subsection, "emerqency" does not inc::.lde 
economic conditions, 
revenue shortfalls or district salar7 ?r 
fringe benefits increases. 
3. 
Approval by voters: eeergenc.y il,pRroyal. 
The guestion of 
Wb.ether to adopt leqislation to impose an increase in revenue Qf 
the State must be submitted to the voters for approval at the 
next general election as defined in Title 2l-A, section 1. 
If 
the Legislature determines by a 
2/3 vote that legislation to 
l._IlCregse taxJ:s or fees should take effect sooner than the next 
general election, the Legislature may provide for submission of 
the guestion to the voters at any regular or special election as 
defined in Title 2l-A, section 1. 
The guestion of whether to 
adopt 
an 
increase 
in 
revenue 
of 
a 
local district must 
be 
submitted to the voters of the district at the next general or 
special districtwide election. 
4. 
Revenue estimates. 
A measure submitted to the voters 
y,nder this section must i~e an estimate of the amount to be 
raised by the measure 
for 
the first 
fiscal years of its 
implementation. 
5. 
Notice. 
At least 30 days before an election reguired 
under this chapter, the election officer shall mail at the least 
cost 
a 
titled notice 
or 
set of 
notices 
addressed 
to 
"All 
Registered Voters" at each address of every active registered 
voter. 
Notices must include the following information and may 
not include any additional information: 
A. 
The election date, hours, ballot title and text and 
local election office address and telephone number; 
B. 
For each proposed revenue increase, 
the estimated or 
actual total of fiscal year spending for the current 
~'ear 
and each of the past 4 years and the overall percentaqe and 
dollar change j 
C. 
For the first full fiscal year of each Pl'QPI,)sed revenue 
.in.cJ;:~ estimates of the maximum dollar amouIlt .. ....Q..f...~ 
increase and of fiscal year spending without the increase; 
.an.Q, 
D. 
Two 
~l,-ummaries~p-t.~O words each, one in support of 
and one in opposition to each proposal, of written comments 
filed with the election officer by 
days before the 
election. 
A summary may not mention names of persons or 
private groups, 
nor 
any 
endorsements 
of or 
resolutions 
against 
the proposal. 
Measure 
representatives 
following 
these rules shall write this summary for their proposal. 
The election officer shall maintain and accurately summarize 
all other relevant written comments. 
Except by later voter approval, if an increase in revenue exceeds 
any estimate prepared under paragraph C for the Same fiscal year, 
the tax increase is thereafter reduced in proportion to the 
amount of the excess, and the excess revenue that was collected 
must be refunded in the next fiscal year. 
Ballot guestions for 
revenue increases must begin: 
"Shall (specify district) revenues 
be increased (amount of first or, if phased in, full fiscal year 
dollar increase) annually ... ?" 
6. 
Costs. 
The State shall reimburse municipalities for the 
following costs: 
A. 
The 
costs 
of 
any election under 
this 
section 
and 
providing the notice reguired under subsection 5 if the 
election provides for a state tax increase; and 
B. 
The cost of one local district election per year under 
t.his 
section if that election occurs 
during 
a 
regular 
election. 
§2044. 
E~nditure limitations 
1. 
State elt,Penditure limitation. 
Beginning with the first 
fiscal year that begins after this section takes effect, the 
maximum annual percentage change in state fiscal year spending in 
the categories specified in this subsection eguals the inflation 
adjustment factor plus the population adjustment factor and any 
increases attributable to measures approved under section 2043. 
This limitation must be calculated separately for the following 
categories: 
A. 
General Fund: 
B. 
Highway Fund: 
C. 
Quasi-governmental agencies and Other Special 
Re~nue. 
funds, 
for which separate individual limitations must be 
applied. 
For 
guasi-governmental 
agencies 
whose 
pr imary 
purpose is providing educational programs, 
the limitation 
must 
be 
calculated 
by 
substituting 
for 
the 
population 
adjustment factor 
a 
factor based on 
changes 
in student 
enrollment. 
2. 
Local exPe~4iture limi~ion. Beginning with the first 
fiscal year that begins after the effective date of this section, 
the maximum annual percentage change in fiscal year spending for 
a local district that is a school administrative unit eguals the 
inflation adjustment 
factor 
plus 
the 
change 
in its student 
enrollment and any increases attributable to measures approved 
under section 2043. 
The maximum annual percentage change in 
fiscal year spending for a local district that is not a school 
administrative unit for a fiscal year may not exceed: 
A. 
The amount of revenue for the local district for the 
previous fiscal year adjusted by the change in the assessed 
value of taxable real and personal property in the local 
district. or the amount of revenue for the local district 
for 
the previous fiscal year 
adjusted by the inflation 
adjustment factor plus the population adjustment factor, 
whichever is lower; plus 
B. 
Any increases attributable to measures approved under 
section 2043. 
3. 
Exceptions. 
The 
following 
may 
not 
be 
counted 
in 
calculating expenditure limitations under this section: 
A. 
Amounts 
returned to taxpayers as refunds of amounts 
exceeding the expenditure limitation in a prior year: 
B. 
Amounts received from the Federal Government; 
c. 
Amounts 
collected 
on 
behalf 
of 
another 
level 
of 
government: 
D. 
Pension contributions by employees 
and pension fund 
earnings; 
E. 
Pension 
and 
disability 
payments 
made 
to 
former 
government employees; 
F. 
Amounts received as g~ants, gifts or donations that must 
be spent for purposes specified by the donor; 
G. 
Amounts paid pursuant to a court award; or 
H. 
Reserve transfers or expenditures. 
4. 
Ezceeding 
e~nditure limitation. 
If 
revenues 
are 
projected to exceed the expenditure limitations in this section, 
the amount of revenues exceeding the expenditure limitations may 
~spent if approved in the Same manner as required for a revenue 
increase under section 2043. 
S2045. 
Transfers and refund of unappropriated General Fund 
surplus 
1. 
Fund created. 
The Tax Relief Reserve Fund, referred to 
in this section as "the fund," is created for the purposes set 
forth in this chapter. 
The fund may not lapse, but remains in a 
continuing carrying account to carry out the purposes of this 
section. 
2. 
Transfer. 
At the close of each fiscal year, the State 
Controller 
shall 
identify 
the 
amount 
of 
General 
Fund 
unappropriated surplus and make the following transfers: 
A. 
Eighty percent of the unappropriated surplus must be 
transferred to the fund: and 
B. 
Twenty percent of the unappropriated surplus must be 
transferred 
to 
the 
Maine 
Budget 
Stabilization 
Fund 
established in section 1522. 
3. 
Notification. 
By 
Controller 
shall 
notify 
Assessor of the amount in 
required by subsection 2. 
September 15th annually, 
the State 
the 
Legislature 
and 
the 
State 
Tax 
the fund as a result of the transfers 
4. 
Refund tbumgh legi~l~ti.Ye ac..tion. 
I f the amount in the 
fund exceeds $25,000,000, the Legislature shall, by October 15th, 
enact legislation to provide for 
the 
refund to taxpayers of 
amounts in the fund. 
Refunds may take the form only of temporary 
or permanent broad-based tax credits, rebates or rate reductions. 
5. 
Refund 
in 
case 
of 
legislative 
inaction. 
If 
the 
Legislature does not enact legislation by October 15th to provide 
refunds 
pursuant 
to 
subsection 4, 
then the State Controller 
shalL by October 30th, notify the State Tax Assessor of the 
amount in the fund. 
The State Tax Assessor shall calculate a 
one-time bonus personal exemption refund. 
The 
amount of tQe 
personal exemption refund must be calculated by dividing the 
amount in the fund 
identifieg, by 
th~t&te Controlle~nde£ 
subsection 3 by the nwnber of personal exemptions claimeg, on 
income tax returns filed for tax years beginning in the previous 
kaleng,ar year and roundeg, down to the nearest $5 increment. 
The 
State Tax Assessor shall issue a refung, by November 30th to a 
taxpayer who filed an income tax return by April 15th of the Same 
calendar year based on the number of personal exemptions claimed 
on the taxpayer's return without regard to the taxpayer's tax 
liability for the year. 
~2046. Transfers and refund of unallocated Highway Fund surplus 
1. 
Fund created. 
The Highway Fund Reserve Fund, referred 
to in this section as -"the fund," is created for the purposes set 
forth in this chapter. 
2. 
Transfer. 
At the close of each fiscal year. the State 
Controller shall identify the amount of Highway Fund unallocated 
surplus and make the following transfers; 
A. 
Eighty percent of 
the 
unallocated surplus 
must 
be 
transferred to the fund: and 
B. 
Twenty percent of 
the 
unallocated surplus 
must 
be 
transferred to the Maine Highway Budget Stabilization Fund 
established in section 1523. 
J. 
Rotification. 
By 
September 15th annually, 
the State 
Controller shall notify the Legislature of the amount in the fund 
as a result of the transfers required by subsection 2, 
4. 
Refund through legislative action. 
If the amount in the 
fund exceeds 10'lt. of Highway Fund expenditures for the previous 
fiscal year, the State Tax Assessor shall calculate, based on the 
amount in the fund, 
a proportional reduction in the taxes on 
motor 
fuels 
under Part 
to 
become effective the 
following 
January 1st and remain in effect for one calendar year. 
§2041. 
Revenues of quasi=governmental agencies and Other Special 
Revenue funds accounts 
By September 15th annually, each quasi-governmental agency 
or state agency that manages 
an Other Special Revenue 
funds 
account 
shall 
submit 
an 
annual 
report 
to 
the 
Legislature 
identifying revenues received in the preceding fiscal year that 
~~ceed the expenditure limitation established in section 2044 and 
any 
other 
uncommitted 
revenues 
received during 
the 
previous 
fiscal 
year 
and 
proposing 
a 
plan for 
refunding 
the 
amount 
identified 
that 
exceeds 
10'lt. 
of 
the 
previous 
fiscal 
year's 
expenditure. 
§2048. 
Refund of excess local revenues 
If a local district receives revenues in a fiscal year in 
excess of 
the expenditure limitation under 
section 2044 
the 
local district must use the amount of the unprotected excess to 
reduce the amount of property tax assessed in the succeeding 
year. 
For purposes of this section, "unprotected excess" means 
the amount in excess of an amount set aside in a reserve account 
for unanticipated contingencies, which may not exceed 10% of the 
previous fiscal year's expenditure. 
§2049. 
Emergen£Y taxes 
1. 
Emergency tues permitted: conditions. 
The State or a 
l~~l district may impose emergency taxes only in accordance with 
this section; 
A. 
The tax must be approved for a specified time period by 
a 
2/3 
majority 
of 
the 
members 
of 
each 
House 
of 
the 
~islature or by a 2/3 majority of the legislative body of 
a local district: 
B. 
Emergency tax revenue may be spent only after other 
available reserves are depleted and must be refunded 180 
days after the emergency ends if not spent on the emergency; 
.and 
C. 
The tax must be submitted for approval by the voters at 
the next statewide or districtwide election. 
2. 
Absence of approval. 
If not approved by the voters as 
provided in this section, 
an 
emergency tax expires 
days 
following the election. 
Individual or class action lawsuits may be filed to enforce 
this chapter and must be given the highest civil priority for 
resolution. 
Successful 
plaintiffs 
are 
allowed 
costs 
and 
reasonable attorney's fees, but a district is not unless a suit 
against it is ruled frivolous. 
Revenue collected, kept or spent 
in conflict with this chapter for 4 full fiscal years before a 
suit is filed must be refunded with 10% annual simple interest 
from the initial conduct. 
Sec. 9. 36 MRSA §3321, sub-§5 is enacted to read: 
5. 
Voter approval. 
Beginning on the July 1st following the 
effective date of this subsection, a change in the rate of excise 
tax resulting from the adjustment required in subsection 1 may 
only take effect if approved by a majority of the voters at a 
regular or special election. 
Sec. 10. Maine Budget Stabilization Fund. 
The Maine 
Budget 
Stabilization Fund established in the Maine Revised Statutes, 
Title 5, section 1522 is the successor in every way to the Maine 
Budget Stabilization Fund established under Title 5, section 1513 
that is repealed in this Act. 
All funds in the Maine Budget 
Stabilization Fund established under Title 5, section 1513 are 
transferred to the Maine Budget Stabilization Fund established in 
Title 5, section 1522 on the effective date of this Act. 
Sec. 11. Legislative intent; relationship to private and special laws. 
It is the intent of the Legislature that the provisions of this 
Act supersede any conflicting provisions of private and special 
law 
relating 
to 
the 
determination 
of 
.revenue, 
fees 
and 
expenditures. 
Sec. 12. Legislative intent; relationship to county tax and budget 
laws. 
It is the intent of the Legislature that the provisions of 
this 
Act 
supersede 
any conflicting 
prov~s~ons of 
the 
Maine 
Revised 
Statutes, 
Title 
30-A, 
chapter 
relating 
to 
the 
assessmen·t of county taxes and county expenditures. 
SUMMARY 
The bill proposes to restrain the growth in state and local 
government by imposing expenditure limitations on state and local 
government and by requiring a procedure of voter approval of tax 
and fee increases. 
Under 
this bill, 
growth 
in 
annual 
expenditures 
of 
the 
General Fund, the Highway Fund, quasi-governmental organizations, 
Other Special Revenue funds and local district governments are 
limited according 
to 
increases 
in population 
and 
inflation. 
Growth in budgets of school administrative units and state-level 
educational institutions is limited according to increases in 
inflation and student enrollment. 
For 
the General 
Fund 
and 
Highway 
Fund 
budgets, 
revenues 
exceeding 
the 
expenditure 
limitation must be distributed by directing 20~ of that excess to 
a budget stabilization fund and 
80~ of that excess to a tax 
relief fund. 
The budget stabilization funds may be used only in 
years when revenues are not sufficient to fund the level of 
expenditure permitted by the growth limits. 
The tax relief funds 
must be used to provide tax relief through refunds proportional 
to individual 
income 
tax personal exemptions 
claimed in the 
previous tax year or 
a 
decrease in motor fuels taxes. 
For 
quasi-governmental agencies and state agencies that manage Other 
Special Revenue funds, the managers of those funds must report 
excess surpluses to the Legislature with a plan for refund of 
those revenues. 
Under this bill, an increase in revenue would be possible 
only by a 
2/3 vote of each House of the Legislature or the 
legislative body of a local district or the governing body of a 
Page l2-LR3236(1) 
quasi-governmental agency and the approval of the voters of the 
jurisdiction, if ppplicable.