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1 STATE OF OKLAHOMA
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2 2nd Session of the 60th Legislature (2026)
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3 SENATE BILL 1404 By: Kirt
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5 AS INTRODUCED
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6 An Act relating to state fiscal affairs; amending 62
6 O.S. 2021, Section 34.102, which relates to the
7 Revenue Stabilization Fund; authorizing the
7 withdrawal of funds upon certain federal shutdown;
8 limiting amount to be drawn; providing for
8 expenditure of funds; requiring the Director of the
9 Office of Management and Enterprise Services to
9 prepare and submit weekly report; requiring certain
10 federal funds to be deposited in the Revenue
10 Stabilization Fund; defining term; updating statutory
11 reference; updating statutory language; and providing
11 an effective date.
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14 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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15 SECTION 1. AMENDATORY 62 O.S. 2021, Section 34.102, is
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16 amended to read as follows:
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17 Section 34.102. A. There is hereby created in the State
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18 Treasury a revolving fund to be known and designated as the "Revenue
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19 Stabilization Fund". The fund shall be a continuing fund, not
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20 subject to fiscal year limitations.
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21 B. For determinations made regarding deposits for fiscal years
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22 beginning on or after July 1, 2019, no monies shall be deposited to
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23 the credit of the Revenue Stabilization Fund until such time as the
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24 amount of actual revenue certified by the State Board of
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Req. No. 3102 Page 1
1 Equalization as having been deposited into the General Revenue Fund
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2 for the first fiscal year prior to the beginning of the fiscal year
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3 that deposits to the Revenue Stabilization Fund are first made
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4 equals or exceeds Six Billion Six Hundred Million Dollars
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5 ($6,600,000,000.00).
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6 C. Once the provisions prescribed by subsection B of this
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7 section have been met, deposits to the Revenue Stabilization Fund as
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8 prescribed by this section may be made during any subsequent fiscal
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9 year according to the requirements and limitations imposed by this
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10 act this section, Sections 34.103 and 34.104 of this title, and
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11 Sections 1004 and 2352 of Title 68 of the Oklahoma Statutes;
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12 provided that no deposits shall be made during a fiscal year where
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13 the State Board of Equalization General Revenue Fund certification
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14 for said such fiscal year is less than the State Board of
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15 Equalization General Revenue Fund certification for the previous
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16 fiscal year plus an increment equal to the amount otherwise
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17 calculated for deposit pursuant to subsection E of this section.
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18 D. Notwithstanding any other provisions of this section, unless
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19 such deposits are the result of a direct appropriation to the
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20 Revenue Stabilization Fund by the Legislature, no monies shall be
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21 deposited to the credit of the Revenue Stabilization Fund:
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22 1. For any month during a fiscal year after the month during
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23 which the declaration of a revenue failure pursuant to the
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24 provisions of Section 34.49 of this title has been made. For
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Req. No. 3102 Page 2
1 purposes of this subsection, the limitation on deposits to the
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2 Revenue Stabilization Fund shall be imposed for the remaining months
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3 of the fiscal year during which the revenue failure was declared,
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4 but shall not operate as a limitation upon deposits for any
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5 subsequent fiscal year unless a revenue failure is declared at some
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6 time during such fiscal year; or
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7 2. That would cause deposits to the Revenue Stabilization Fund
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8 for the fiscal year to exceed three percent (3%) of the State Board
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9 of Equalization General Revenue Fund certification for that fiscal
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10 year.
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11 E. Except as provided in subsection I J of this section, the
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12 Revenue Stabilization Fund shall consist of:
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13 1. One hundred percent (100%) of the revenue derived from the
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14 gross production tax on oil levied pursuant to Section 1001 of Title
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15 68 of the Oklahoma Statutes which is in excess of the five-year
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16 average computed as prescribed by Section 34.103 of this title;
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17 2. One hundred percent (100%) of the revenue derived from the
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18 gross production tax on natural gas levied pursuant to Section 1001
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19 of Title 68 of the Oklahoma Statutes which is in excess of the five-
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20 year average computed as prescribed by Section 34.103 of this title;
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21 3. Seventy-five percent (75%) of the revenue derived from
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22 corporate income tax levied pursuant to Section 2355 of Title 68 of
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23 the Oklahoma Statutes which is in excess of the five-year average
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24 computed as prescribed by Section 34.103 of this title; and
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1 4. Any amounts appropriated by the Legislature.
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2 F. 1. Except as provided in paragraph 2 of this subsection, in
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3 the event that a revenue failure is declared with respect to the
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4 General Revenue Fund pursuant to Section 34.49 of this title, the
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5 Director of the Office of Management and Enterprise Services may
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6 withdraw up to one-quarter (1/4) of the balance of the Revenue
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7 Stabilization Fund available at the beginning of the fiscal year,
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8 provided the total amount withdrawn shall not exceed the amount of
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9 the declared revenue failure, to in equal proportions reduce or
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10 avoid reductions to agencies for the current fiscal year and to
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11 mitigate potential reductions of funds to be expended by common
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12 school districts which were appropriated or authorized by the
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13 Legislature, but excluding any funds which are apportioned directly
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14 to common school districts.
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15 2. For the fiscal year ending June 30, 2020, in the event that
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16 a revenue failure is declared with respect to the General Revenue
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17 Fund pursuant to Section 34.49 of this title, the Director of the
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18 Office of Management and Enterprise Services may withdraw amounts up
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19 to a total of one-half (1/2) of the highest balance during the
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20 fiscal year ending June 30, 2020, of the Revenue Stabilization Fund;
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21 provided, the total amount withdrawn shall not exceed the amount of
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22 the declared revenue failure less any appropriations made by the
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23 Legislature to offset such revenue failure, to in equal proportions
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24 reduce or avoid reductions to agencies for the fiscal year and to
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Req. No. 3102 Page 4
1 mitigate potential reductions of funds to be expended by common
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2 school districts which were appropriated or authorized by the
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3 Legislature for the fiscal year ending June 30, 2020, but excluding
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4 any funds which are apportioned directly to common school districts.
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5 No monies shall be withdrawn under the provisions of this subsection
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6 for the purpose of reducing or avoiding reductions of appropriations
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7 made pursuant to Section 129 of Enrolled House Bill No. 2765 of the
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8 1st Session of the 57th Oklahoma Legislature or Section 1 of
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9 Enrolled Senate Bill No. 1076 of the 1st Session of the 57th
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10 Oklahoma Legislature.
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11 G. In the event that a revenue failure is declared with respect
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12 to the General Revenue Fund pursuant to Section 34.49 of this title,
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13 the Legislature may appropriate up to one-quarter (1/4) of the
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14 balance of the Revenue Stabilization Fund available at the beginning
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15 of the fiscal year, not to exceed the amount of the revenue failure
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16 as declared with respect to the General Revenue Fund pursuant to
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17 Section 34.49 of this title.
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18 H. 1. In the event of a federal government shutdown of longer
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19 than fifteen (15) days, the Director of the Office of Management and
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20 Enterprise Services may withdraw up to one-quarter (1/4) of the
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21 balance of the Revenue Stabilization Fund available at the beginning
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22 of the fiscal year, provided the total amount withdrawn shall not
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23 exceed the amount of funding required to:
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1 a. pay the salaries of state employees who are either
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2 partially or fully paid by federal funds and who have
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3 been furloughed as a result of the federal government
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4 shutdown. Provided, only the portion of salaries
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5 affected by the lapse of federal funds shall be paid
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6 with the balance of the Revenue Stabilization Fund
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7 authorized to be expended pursuant to this subsection,
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8 and
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9 b. pay for the portion of Supplemental Nutrition
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10 Assistance Program benefits to individuals enrolled in
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11 the program that are reduced or eliminated as a result
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12 of the federal government shutdown.
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13 2. Each week in which a federal government shutdown exceeding
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14 fifteen (15) days occurs, the Director of the Office of Management
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15 and Enterprise Services shall prepare and electronically submit a
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16 report to the Governor, the President Pro Tempore of the Senate, and
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17 the Speaker of the House of Representatives that contains the
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18 following information:
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19 a. any amount withdrawn from the Revenue Stabilization
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20 Fund pursuant to the provisions of this subsection,
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21 b. the number of state employees who have been furloughed
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22 or have had salaries reduced due to the federal
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23 government shutdown, including the amount of salary
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24 reduction,
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1 c. the amount of salaries paid pursuant to the provisions
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2 of this subsection,
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3 d. the number of Supplemental Nutrition Assistance
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4 Program enrollees that have had benefits reduced or
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5 eliminated by the federal shutdown, including the
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6 total amount of benefit reductions, and
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7 e. the amount of benefits paid pursuant to the provisions
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8 of this subsection.
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9 3. If, upon the end of a federal government shutdown, the
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10 federal government provides funds to pay for the portion of salaries
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11 of state employees that were paid pursuant to the provisions of this
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12 section, those funds shall be deposited in the Revenue Stabilization
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13 Fund.
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14 4. If, upon the end of a federal government shutdown, the
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15 federal government provides funds to pay benefits reduced or
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16 eliminated by the federal shutdown that were paid pursuant to the
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17 provisions of this section, those funds shall be deposited in the
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18 Revenue Stabilization Fund.
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19 5. As used in this subsection, "federal government shutdown"
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20 shall mean the same as the term "covered lapse in appropriations" as
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21 defined in 31 U.S.C., Section 1341(c)(1)(A).
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22 I. If the amount of revenue certified by the State Board of
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23 Equalization at its February meeting in any year to be collected in
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24 the General Revenue Fund for the upcoming fiscal year is less than
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Req. No. 3102 Page 7
1 the amount of revenue certified by the State Board of Equalization
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2 to be collected in the General Revenue Fund for the current fiscal
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3 year as determined at its February meeting conducted in the
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4 preceding calendar year, the Legislature may appropriate up to one-
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5 half (1/2) of the balance of the Revenue Stabilization Fund
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6 available at the beginning of the fiscal year; provided, that the
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7 amount withdrawn shall not exceed the amount of the decline in
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8 revenue certified.
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9 I. J. If during the State Board of Equalization certification
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10 process, one or more of the revenue sources identified in paragraphs
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11 1, 2, and 3 of subsection E of this section are forecasted to
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12 experience a revenue decrease, then the total deposits to the
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13 Revenue Stabilization Fund as otherwise calculated under subsection
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14 E of this section shall be reduced in an amount equal to such
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15 revenue decreases. For purposes of this subsection, "revenue
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16 decrease" means an identified revenue source derived in an amount
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17 less than the five-year average for such revenue source.
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18 SECTION 2. This act shall become effective November 1, 2026.
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20 60-2-3102 QD 12/31/2025 2:04:25 AM
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Req. No. 3102 Page 8Every fact on this page links to its source, starting with the official bill record.