Federal Receipts Reporting Requirements Act Exposed

The Federal Receipts Reporting Requirements Act was adopted by ALEC's Tax and Fiscal Policy Task Force, approved by ALEC's Board of Directors on January 16, 2012. (Accessed on 1/22/2016).

ALEC Bill Text

Summary

This bill requires all state agencies and political subdivisions to disclose (i) total federal receipts; (ii) the percentage such receipts are of their respective budget, and (iii) what their specific contingency plan is if federal receipts are diminished.

Model Legislation

{Title, enacting clause, etc.}

Section 1 {Title}

This act may be cited as the Federal Receipts Reporting Requirements Act.

Section 2 {Definitions.}

(A) As used in this section:

(1) "Designated state agency" means the [list state departments].

(2) "Designated state agency" does not include the judicial branch, the legislative branch, or an office or other entity within the judicial branch or the legislative branch.

(3) “Political Subdivision” means [list political subdivisions].

(4) "Federal receipts" means the federal financial assistance, as defined in 31 U.S.C. Sec. 7501, that is reported as part of a single audit.

(5) "Single audit" is as defined in 31 U.S.C. Sec. 7501.

Section 2 {Federal Receipts Reporting Requirements.}

(A) Designated state agencies and political subdivisions shall each year, on or before October 31, prepare a report that:

(1) reports the aggregate value of federal receipts the designated state agency or political subdivision received for the preceding fiscal year;

(2) reports the aggregate amount of federal funds appropriated by the Legislature to the designated state agency or political subdivision for the preceding fiscal year;

(3) calculates the percentage that constitutes federal receipts of the total budget for the designated state agency or political subdivision received for that fiscal year; and

(4) develops a plan(s) for operating the designated state agency or political subdivision if there is a reduction of:

(a) 5 percent or more in the federal receipts that the designated state agency or political subdivision receives; and

(b) 25 percent or more in the federal receipts that the designated state agency or political subdivision receives.

(B) The designated state agencies and political subdivisions shall submit the report to the [Division of Finance] on or before November 1 of each year.

(C)

(1) The [Division of Finance] shall, on or before November 30 of each year, prepare a report that:

(a) compiles and summarizes the reports the [Division of Finance] receives in accordance with Subsection 2(B); and

(b) compares the aggregate value of federal receipts each designated state agency and political subdivision received for the previous fiscal year to the aggregate amount of federal funds to the total budget of the designated state agency or political subdivision for that fiscal year.

(2) The [Division of Finance] shall, as part of the report required by Subsection 2(C)(1), compile a list of designated state agencies and political subdivisions that do not submit a report as required by this section.

(D)The [Division of Finance] shall submit the report required by Subsection 2(C) to the [Appropriations Committee] on or before December 1 of each year.

(E) Upon receipt of the report required by Subsection 2(C), the [chair(s) of the Appropriations Committee] shall place the report on the agenda for review and consideration at the next [Appropriations Committee] meeting.

(F) When considering the report required by Subsection 2(C), the [Appropriations Committee] may elect to:

(1) recommend that the Legislature reduce or eliminate appropriations for a designated state agency or political subdivision;

(2) take no action; or

(3) take another action that a majority of the committee approves