HB 12-1353 Summary

• Modifies the operational account of the Severance Tax Trust Fund to implement a tiered approach for proportional reductions when revenue shortfalls occur, rather than uniform automatic reductions.

• Changes revenue estimate timing from December/March to June for July 1 transfers, with July 1 reductions covering 40% of projected shortfall and January 4 reductions covering 70% of projected shortfall.

• Allows up to one-third of the 15% reserve to be used to offset proportional reductions, with the April 1 installment able to be increased to recover earlier reductions if revenue estimates permit.

• Reduces the reserve requirement for fiscal year 2012-2013 to current operating appropriations minus $1 million plus 15% of transfers, with this reduction repealing on July 1, 2014.

• Authorizes proportional distributions on August 20 of the following fiscal year if revenues were sufficient to more fully fund transfers that were previously reduced.