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Legislation Document
SPONSOR:
Rep. Harris & Rep. Minor-Brown & Rep. Osienski & Rep. Dukes & Rep. Spiegelman & Sen. Sokola & Sen. Townsend & Sen. Lockman & Sen. Hocker & Sen. Pettyjohn
Sens. Buckson, Lawson, Richardson, Wilson
HOUSE OF REPRESENTATIVES
153rd GENERAL ASSEMBLY
HOUSE BILL NO. 370
AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO THE DELAWARE ECONOMIC & FINANCIAL ADVISORY COUNCIL TO BE KNOWN AS THE DUPONT-COOK FINANCIAL RESPONSIBILITY ACT.
WHEREAS, the Delaware Economic & Financial Advisory Council (“DEFAC”) was initially established in 1977 by Governor DuPont; and
WHEREAS, it was envisioned as a tool to improve the State’s fiscal management practices and to provide nonpartisan, objective revenue and expenditure estimates to the Governor and General Assembly; and
WHEREAS, a bipartisan commitment to balanced budgets and sound financial planning has fostered Delaware's reputation for fiscal prudence and budgetary restraint which has been further strengthened by the availability of credible, nonpartisan, and expert projections of the State's revenues and expenditures and of important national and state economic trends; and
WHEREAS, DEFAC has for nearly 5 decades provided a sound basis upon which to make determinations regarding the State's operating and capital budgets, and helped ensure that the long-term fiscal implications of administrative, budgetary, and legislative alternatives are considered before those alternatives are adopted as state policy; and
WHEREAS, DEFAC currently exists by Executive Order; and
WHEREAS, it is in the interest of the State for the General Assembly to codify DEFAC to ensure its continued existence.
NOW, THEREFORE:
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend Subchapter IV, Chapter 63, Title 29 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
Subchapter IV.
Office of Information Services [Repealed].
Delaware Economic & Financial Advisory Council.
§ 6351. Short Title.
This subchapter is known and may be cited as the “DuPont-Cook Financial Responsibility Act”.
§ 6352. Purpose.
The purpose of this Act is to preserve The Delaware Economic & Financial Advisory Council’s current structure
while strengthening continuity, transparency, and clarity.
§ 6353. Delaware Economic & Financial Advisory Council; establishment.
The Delaware Economic & Financial Advisory Council (“DEFAC”) is hereby established.
§ 6354. Membership.
(a) DEFAC consists of at least 25, but no more than 34, members, including all of the following:
(1) Four members of the General Assembly, to include 1 member from each of the House majority and minority caucuses, who must be designated by the Speaker of the House, and 1 member from each of the Senate majority and minority caucuses, who must be designated by the President Pro Tempore of the Senate, who serve at the pleasure of the designating authority.
(2) At least 12, but no more than 21, members appointed by the Governor from both the public and private sectors of the State's economy.
(3) The following members, who serve as ex officio members of DEFAC, with the same rights, privileges, and duties as other members:
a. The Controller General.
b. The Director of the Office of Management and Budget.
c. The Secretary of Finance.
d. The Secretary of State.
e. The Secretary of Transportation.
f. The Secretary of the Department of Health and Social Services.
g. The Joint Finance Committee Co-Chairs.
h. The State Treasurer.
(b) The Governor must designate a Chairperson of DEFAC for a term of 2 years from among its members.
(c) A member appointed by the Governor shall serve at the pleasure of the Governor.
(d) If the total number of DEFAC members drop below 25, the number of members may not remain below 25 for more than 3 months.
§ 6355. Duties.
DEFAC must do all the following:
(1) Meet in March, May, June, October, and December of each year, and when deemed necessary by the Governor or the Chairperson.
(2) Serve in a general advisory capacity to the Governor and the Department of Finance.
(3) Advise the Governor, the Secretary of Finance, and Legislative Council on the following:
a. The overall financial condition of the State.
b. Current and projected economic conditions and trends, particularly as they affect the expenditures and revenues of the State, its citizens, and its major industries.
c. The tax policy of the State and the impact of federal tax policies.
(4) Submit to the Governor, the Secretary of Finance, the Controller General, and the General Assembly, by the dates required under § 6534(a) of this title, estimates as follows:
a. General Fund and Transportation Trust Fund revenue by major categories for the current fiscal year.
b. General Fund and Transportation Trust Fund revenue by major categories for the succeeding 2 fiscal years.
c. General Fund and Transportation Trust Fund expenditures for the current fiscal year and General Fund expenditures for the succeeding fiscal year.
(5) Submit to the Governor, the Secretary of Finance, the Controller General, and the General Assembly, not
later than December 31 of each year, estimates as follows:
a. General Fund and Transportation Trust Fund revenue by major categories for 5 fiscal years, starting with the current fiscal year and including the next succeeding 4 fiscal years.
b. General Fund expenditures for 4 fiscal years, starting with the current fiscal year and including the next succeeding 3 fiscal years.
(6) Perform such other duties and responsibilities imposed upon it by the Delaware Code, including all of the following:
a. The requirements under § 9903(k) of Title 16 and such other related duties imposed from time to time, with respect to the Delaware Health Care Spending Benchmark.
b. The requirements under § 7423 of this title with respect to statutory limits on the State’s indebtedness.
c. The requirements under § 6533(i) of this title, with respect to the Benchmark Index and reporting of budgetary reserves including the Budget Stabilization Fund.
d. The requirements under § 6534(b)(3) of this title with respect to reviewing tax preferences.
e. The requirements of § 515(a) of Title 30 with respect to inflation adjustment factor calculations.
(7) Prepare an annual report, summarizing DEFAC’s activities throughout the year, including forecast accuracy and key fiscal risks identified, no later than December 31, for distribution to the Governor, the Director and Librarian of the Division of Legislative Services, the Secretary of the Senate and the Chief Clerk of the House of Representatives for distribution to all members of the General Assembly.
§ 6356. Proceedings.
(a) No business may be transacted at any meeting of DEFAC without a quorum. A quorum consists of a majority of the members of DEFAC.
(b) A roll call vote of all DEFAC members on every motion or resolution must be recorded as part of the minutes of such meetings and is considered a matter of public record except when the presiding officer determines and announces a unanimous vote on any issue, in which case the vote must also then be so recorded and considered a matter of public record.
§ 6357. DEFAC Health Care Spending Benchmark Subcommittee.
(a) The DEFAC Health Care Spending Benchmark Subcommittee (“Subcommittee”) is established.
(b) The Subcommittee consists of the following:
(1) A Chair and a Vice-Chair, both of whom must be members of DEFAC and have health care expertise, appointed by the DEFAC Chairperson.
(2) Three existing members of DEFAC, appointed by the DEFAC Chairperson.
(3) At least 1, but no more than 2, members representing health economists, appointed by the Governor.
(4) At least 1, but no more than 2, members representing quality improvement experts from 2 health care systems or hospitals that operate in the State, appointed by the Governor.
(5) Two members of the General Assembly, or their designee, to include 1 member to be designated by the Speaker of the House and 1 member to be designated by the President Pro Tempore of the Senate.
(c) All Subcommittee members are appointed by and serve at the pleasure of the appointing authority.
(d) All meetings must be called by the Chair of the Subcommittee. The Vice-Chair must chair any meetings of the Subcommittee in the absence of the Chair.
§ 6358. Cooperation of state agencies and others; staffing and financial support.
(a) All state agencies must cooperate in providing data and assistance to DEFAC as may be requested by the Chairperson of DEFAC and approved by the Secretary of Finance. The data and assistance may include statistics, reports, projections, and testimony. DEFAC may call and rely upon the expertise of individuals and entities outside of its membership for research, advice, support, or other functions necessary and appropriate to accomplish its mission.
(b) Upon request of the Chairperson of DEFAC, the Department of Finance, and other state agencies as deemed appropriate by the Secretary of Finance, must provide staff and financial support to the activities of DEFAC as approved by the Secretary of Finance.
Section 2: This Act shall take effect upon its enactment into law.
SYNOPSIS
This Act codifies the Delaware Economic & Financial Advisory Council (“DEFAC”) which has existed by Executive Order since 1977. It is known and may be cited as the “DuPont-Cook Financial Responsibility Act.”
The purpose of this Act is to preserve DEFAC’s current structure while strengthening continuity, transparency, and clarity.
DEFAC consists of at least 25, but no more than 34, members. Two members are appointed by the Speaker of the House from each caucus and 2 members are appointed by the Senate President from each caucus. The remainder are appointed by the Governor from the public and private sector. The Governor must appoint at least 12 members to DEFAC. The following serve as ex officio members: the Controller General, Director of the OMB, Secretary of Finance, Secretary of State, Secretary of Transportation, Secretary of DHSS, Joint Finance Committee Co-Chairs, and State Treasurer.
The duties of DEFAC are as follows:
(1) Meet in March, May, June, October, and December of each year, and on other such occasions as deemed necessary by the Governor or the Chairperson.
(2) Serve in a general advisory capacity to the Governor and the Department of Finance.
(3) Advise the Governor, the Secretary of Finance, and Legislative Council on: (a) The overall financial condition of the State of Delaware; (b) Current and projected economic conditions and trends, particularly as they effect the expenditures and revenues of the State, its citizens, and its major industries; and (c) The tax policy of the State and the impact of federal tax policies.
(4) Submit to the Governor, the Secretary of Finance, the Controller General, and the General Assembly, by such dates as required by § 6534(a) of Title 29, General Fund and Transportation Trust Fund revenue and expenditures.
(5) Submit to the Governor, the Secretary of Finance, the Controller General, and the General Assembly, not later than December 31 of each year, estimates on the General Fund and Transportation Trust Fund revenue and expenditures.
(6) Perform such other duties and responsibilities imposed upon it by the Delaware Code.
(7) Prepare an annual report, summarizing DEFAC’s activities throughout the year, including forecast accuracy and key fiscal risks identified, no later than December 31, for distribution to the Governor and the General Assembly.
The DEFAC Healthcare Spending Benchmark Subcommittee is also established.
State agencies must provide DEFAC financial and staffing support, as determined appropriate by the Secretary of Finance.