2022 -- S 2458

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LC004031

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO PUBLIC FINANCE -- STATE BUDGET

     

     Introduced By: Senators de la Cruz, and Rogers

     Date Introduced: March 01, 2022

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 35-3-4, 35-3-7 and 35-3-9 of the General Laws in Chapter 35-3

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entitled "State Budget" are hereby amended to read as follows:

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     35-3-4. Estimates submitted by department heads.

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     (a) On dates determined by the budget officer, but not later than the first day of October in

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each year, each head of a department of the state government, not including the general assembly

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or the judiciary, shall assemble, correlate, and revise, with power to increase or decrease, the

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estimates for expenditures and requests for appropriations for the next ensuing fiscal year of each

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of the divisions, boards, commissions, officers, bureaus, institutions, or agencies of the state

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included within his or her department, and, after this revision, shall prepare an itemized

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departmental estimate of the appropriations necessary to meet the financial needs of the department,

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including a statement in detail of all moneys for which any general or special appropriation is

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desired at the ensuing session of the general assembly. The estimate shall be in such form, and in

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such number of copies, and with such explanation as the budget officer may require, and, on dates

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determined by the budget officer, but not later than the first day of October in each year, shall be

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submitted to the governor through the budget officer and to the fiscal advisors of the house and

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senate.

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     (b) The estimates shall also include a supplemental presentation of estimates of

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expenditures for information resources and information technologies as defined in § 29-8-2

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[repealed], regardless of source of financing. The estimate shall include a detailed listing and

 

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explanation of expenses and the source of funds and shall be in such form, and in such number of

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copies, and with such explanation as the budget officer may require. Copies shall be provided

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directly to the house fiscal advisor, the senate fiscal advisor, and the Rhode Island information

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resources management board.

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     (c) Commencing with the fiscal year beginning on July 1, 2023, and in accordance with

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the schedule provided in this section, the estimates for expenditures and requests for appropriations

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shall be based upon a justification by each department head of the budget of the department from

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a zero base. The budget request shall be accompanied by a statement giving facts and explanations

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of reasons for each item requested. It shall include a brief explanation of the functions of each of

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the divisions, boards, commissions, officers, bureaus, institutions, or agencies of the state included

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within the department and comments on its policies and plans, with such descriptive, quantitative,

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comparative and other data as to work done and other information as is considered necessary or

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desirable. "Zero-based budget" requests, so-called, are requests for appropriations based upon a

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justification of a department from a zero base as if the budget for the department was being initiated

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for the first time and shall be required based upon the following schedule:

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     (1) Beginning with the fiscal year beginning July 1, 2024, zero-based budgets shall be

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submitted by twenty percent (20%) of state departments, being those departments which submitted

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the lowest budget requests for the fiscal year beginning July 1, 2023;

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     (2) Beginning with the next fiscal year, zero-based budgets shall be submitted by twenty

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percent (20%) of state departments, being those submitting the lowest budget requests for the fiscal

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year beginning July 1, 2024, except for those departments included in subsection (c)(1) of this

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section;

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     (3) Beginning with the next fiscal year, zero-based budget requests shall be submitted by

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twenty percent (20%) of state departments submitting the lowest budget requests for the fiscal year

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beginning July 1, 2025, except for those departments included in subsections (c)(1) and (2) of this

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section;

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     (4) Beginning with the next fiscal year, zero-based budget requests shall be submitted by

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twenty percent (20%) of state departments submitting the lowest budget requests for the fiscal year

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beginning July 1, 2026, except for those departments included in subsections (c)(1),(2), and (3) of

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this section;

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     (d) For the fiscal year beginning July 1, 2027, and thereafter, zero-based budgets shall be

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submitted by all remaining state departments.

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     The budget officer shall provide copies to the house fiscal advisor and senate fiscal advisor.

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     35-3-7. Submission of budget to general assembly -- Contents.

 

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     (a) On or before the third Thursday in January in each year of each January session of the

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general assembly, the governor shall submit to the general assembly a budget containing a complete

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plan of estimated revenues and proposed expenditures, with a personnel supplement detailing the

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number and titles of positions of each agency and the estimates of personnel costs for the next fiscal

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year, and with the inventory required by § 35-1.1-3(b)(5). Provided, however, in those years that a

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new governor is inaugurated, the new governor shall submit the budget on or before the first

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Thursday in February. Beginning with the fiscal year beginning July 1, 2023, and in accordance

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with the schedule set forth in § 35-3-4, the budget submitted by the governor shall be a "zero-based

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budget," a budget based upon a justification of each department's estimate of expenditures and

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requests for appropriations from a zero base. In accordance with the schedule set forth in § 35-3-4,

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the entire budget for the fiscal year beginning July 1, 2027, shall be a zero based budget.

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     In the budget the governor may set forth in summary and detail:

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     (1) Estimates of the receipts of the state during the ensuing fiscal year under laws existing

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at the time the budget is transmitted and also under the revenue proposals, if any, contained in the

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budget, and comparisons with the estimated receipts of the state during the current fiscal year, as

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well as actual receipts of the state for the last two (2) completed fiscal years.

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     (2) Estimates of the expenditures and appropriations necessary in the governor's judgment

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for the support of the state government for the ensuing fiscal year, and comparisons with

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appropriations for expenditures during the current fiscal year, as well as actual expenditures of the

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state for the last two (2) complete fiscal years; provided, further, in the event the budget submission

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includes any transfers of resources from public corporations to the general fund, the budget

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submission shall also include alternatives to said transfers.

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     (3) Financial statements of the:

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     (i) Condition of the treasury at the end of the last completed fiscal year;

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     (ii) Estimated condition of the treasury at the end of the current fiscal year; and

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     (iii) Estimated condition of the treasury at the end of the ensuing fiscal year if the financial

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proposals contained in the budget are adopted.

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     (4) All essential facts regarding the bonded and other indebtedness of the state.

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     (5) A report indicating those program revenues and expenditures whose funding source is

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proposed to be changed from state appropriations to restricted receipts, or from restricted receipts

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to other funding sources.

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     (6) Such other financial statements and data as in the governor's opinion are necessary or

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desirable.

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     (b) Any other provision of the general laws to the contrary notwithstanding, the proposed

 

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appropriations submitted by the governor to the general assembly for the next ensuing fiscal year

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should not be more than five and one-half percent (5.5%) in excess of total state appropriations,

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excluding any estimated supplemental appropriations, enacted by the general assembly for the

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fiscal year previous to that for which the proposed appropriations are being submitted; provided

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that the increased state-share provisions required to achieve fifty percent (50%) state financing of

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local school operations as provided for in P.L. 1985, ch. 182, shall be excluded from the definition

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of total appropriations.

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     (c) Notwithstanding the provisions of subsection (a) of this section, the governor shall

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submit to the general assembly a budget for the fiscal year ending June 30, 2006, not later than the

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fourth (4th) Thursday in January 2005.

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     (d) Notwithstanding the provisions of subsection (a) of this section, the governor shall

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submit to the general assembly a supplemental budget for the fiscal year ending June 30, 2006,

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and/or a budget for the fiscal year ending June 30, 2007, not later than Thursday, January 26, 2006.

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     (e) Notwithstanding the provisions of subsection (a) of this section, the governor shall

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submit to the general assembly a supplemental budget for the fiscal year ending June 30, 2007,

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and/or a budget for the fiscal year ending June 30, 2008, not later than Wednesday, January 31,

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2007.

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     (f) Notwithstanding the provisions of subsection (a) of this section, the governor shall

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submit to the general assembly a budget for the fiscal year ending June 30, 2012, not later than

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Thursday, March 10, 2011.

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     (g) Notwithstanding the provisions of subsection (a) of this section, the governor shall

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submit to the general assembly a budget for the fiscal year ending June 30, 2013, not later than

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Tuesday, January 31, 2012.

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     (h) Notwithstanding the provisions of subsection (a) of this section, the governor shall

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submit to the general assembly a budget for the fiscal year ending June 30, 2016, not later than

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Thursday, March 12, 2015.

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     (i) Notwithstanding the provisions of subsection (a) of this section, the governor shall

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submit to the general assembly a budget for the fiscal year ending June 30, 2022, not later than

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Thursday, March 11, 2021.

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     35-3-9. Action on bills by house committee -- Hearings.

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     The budget plan and bill or bills for proposed appropriations, when sent by the governor to

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the general assembly, shall be referred as soon as practicable to an appropriate committee of the

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house of representatives, and the committee shall forthwith proceed to the consideration of the bill.

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and upon receipt of the budget plan the committee shall refer it to a budget panel consisting of three

 

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(3) persons: one of whom shall be appointed by the speaker of the house; one of whom shall be

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appointed by the house minority leader; and one of whom shall be appointed by the senate

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president. The members of the panel shall be persons with expertise and experience in the areas of

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finance or accounting. The panel shall review the budget plan and shall consider the objectives,

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operations, and costs of all activities of each department; explore alternative means of conducting

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the activities of each department; evaluate alternative budget amounts for various levels of effort

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for each activity of each department. The panel shall report its findings and make its

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recommendations as to the needs of each department, the programs and activities of each

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department and all other recommendations and information that it deems appropriate, to the

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committee, within thirty (30) days after the budget plan is referred to it.

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     The committee shall proceed to the consideration of the bill upon receipt of this

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recommendation of the panel. The committee shall hear the budget officer upon the bill as a whole

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or upon any item thereof or any proposed amendment thereto as each may elect, and the committee

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may summon the budget officer to appear before it and to furnish such information relative to the

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bill or any item therein, or any proposed amendment thereto, as it may require, and the committee

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may in its discretion hear the proper person representing any department or agency desiring to be

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heard with respect to any item or amendment in the bill relating to the department or agency;

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provided, that nothing contained in this section shall be construed to limit the right of the committee

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to hold public hearings upon the bill as a whole or upon any item therein, or to summon any person

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for examination regarding any item contained therein, or for the purpose of obtaining information

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necessary for a full and proper consideration of the bill. The committee, after the consideration of

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the bill, shall report the bill with its recommendation endorsed thereon to the house of

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representatives.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC FINANCE -- STATE BUDGET

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     This act would require that the governor submit a zero-based budget to the general

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assembly with the zero-based budget phased in over a five (5) year period, commencing with the

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fiscal budget of July 1, 2023.

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     This act would take effect upon passage.

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