SB 684 98                                          LC 21 4826
SENATE BILL 684
By:  Senators Glanton of the 34th and Gochenour of the 27th
A BILL TO BE ENTITLED
AN ACT
1- 1  To amend Title 50 of the Official Code of Georgia Annotated,
1- 2  relating to state government, so as to enact the "State
1- 3  Sovereignty and Federal Tax Funds Act"; to provide
1- 4  legislative findings; to define certain terms; to create the
1- 5  Federal Tax Fund in the state treasury; to provide that
1- 6  moneys collected by the state for payment to the federal
1- 7  government shall be paid into such fund; to provide that any
1- 8  private person liable for a federal tax shall pay such tax
1- 9  into such fund; to provide that if the federal government
1-10  sanctions the state for failure to comply with a federal
1-11  statute which the General Assembly feels is
1-12  unconstitutional, the state treasury shall withhold from
1-13  payment a certain amount of the funds due the federal
1-14  government; to provide sanctions for failure to comply with
1-15  such provisions; to provide that state officials shall
1-16  comply with such provisions without regard to any action
1-17  taken by the federal government; to provide for a special
1-18  session of the General Assembly; to provide that action by
1-19  the federal authorities shall constitute an action against
1-20  this state and shall be met with all necessary measures; to
1-21  provide for retroactive application; to provide for the
1-22  expenditure of confiscated federal funds; to provide for
1-23  other matters relative to the foregoing; to provide an
1-24  effective date; to repeal conflicting laws; and for other
1-25  purposes.
1-26       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
1-27                           SECTION 1.
1-28  Title 50 of the Official Code of Georgia Annotated, relating
1-29  to state government, is amended by inserting at the end
1-30  thereof a new chapter to read as follows:
1-31    50-32-1.
1-32    This article shall be known and may be cited as the 'State
1-33    Sovereignty and Federal Tax Funds Act.'
-1-
2- 1    50-32-2.
2- 2    (a) The Tenth Amendment to the Constitution of the United
2- 3    States of America states that '(t)he powers not delegated
2- 4    to the United States by the Constitution, or prohibited by
2- 5    it to the States, are reserved to the States respectively,
2- 6    or to the people.'  The General Assembly finds that the
2- 7    Tenth Amendment to the Constitution of the United States
2- 8    of America defines the total scope of federal power as
2- 9    being that specifically stated in the Constitution of the
2-10    United States of America and no more.
2-11    (b) The General Assembly finds that the Congress of the
2-12    United States has the power to lay and collect taxes
2-13    pursuant only to clause 1 of Section 8 of Article 1,
2-14    clauses 4 and 5 of Section 9 of Article 1, and the
2-15    Sixteenth Amendment of the Constitution of the United
2-16    States of America.
2-17    (c) The General Assembly finds that the federal
2-18    government, its agencies or agents, or the United States
2-19    Congress does not have the power under the Constitution of
2-20    the United States of America to withhold from the states
2-21    the benefits of those taxes by use of federal mandates
2-22    that are outside the scope of the powers enumerated in the
2-23    Constitution of the United States of America for the
2-24    federal government.
2-25    (d) In light of the continuing unconstitutional federal
2-26    mandates that withhold the benefits of the taxes, the
2-27    state hereby reasserts its claim of sovereignty pursuant
2-28    to the Tenth Amendment to the Constitution of the United
2-29    States of America.
2-30    50-32-3.
2-31    As used in this Code section, the term:
2-32      (1) 'Consumer tax' means any tax imposed by the federal
2-33      government on any beer, liquor, wine, or similar
2-34      alcoholic beverage, tobacco, gasoline, or any other
2-35      consumer goods.
2-36      (2) 'Director' means the director of the Office of
2-37      Treasury and Fiscal Services.
2-38      (3) 'Excise tax' means any tax that forms a component of
2-39      the State Highway Account.
2-40      (4) 'Federal Tax Fund' means the escrow account created
2-41      by Code Section 50-32-4.
-2-
3- 1      (5) 'Income tax' means any tax imposed by the federal
3- 2      government on incomes from whatever source derived.
3- 3      (6) 'Person' means natural persons, corporations,
3- 4      partnerships, limited liability companies, associations,
3- 5      and other legal entities.
3- 6    50-32-4.
3- 7    (a) The Federal Tax Fund is created in the state treasury.
3- 8    All federal tax moneys collected by the state on behalf of
3- 9    the federal government shall be deposited by the director
3-10    into the Federal Tax Fund.
3-11    (b) The director, on a quarterly basis shall disburse the
3-12    funds to the respective appropriate federal recipient.
3-13    If, as a result of state action taken pursuant to this
3-14    article, the federal government denies any matching funds
3-15    or grants, imposes or mandates any financial sanctions or
3-16    penalties, or withholds funds resulting in a financial
3-17    cost to the state, the director shall withhold from
3-18    payment all or part of the quarterly disbursement
3-19    otherwise disbursed or transferred to each federal
3-20    recipient, per occurrence, in an amount equal to the total
3-21    cumulative outstanding amount of federal sanctions, denial
3-22    of any matching funds, denial of grants, or any other
3-23    financial sanctions, penalties, or withholding of funds.
3-24    The director shall continue to withhold all or part of the
3-25    quarterly disbursement otherwise disbursed or transferred
3-26    to each respective appropriate federal recipient until the
3-27    total cumulative amount withheld from the federal
3-28    government is equal to the total cumulative outstanding
3-29    amount of federal sanctions, denial of any matching funds,
3-30    denial of grants, or any other financial sanctions,
3-31    penalties, or withholding of funds.
3-32    (c) Funds that the director withholds from each federal
3-33    recipient shall be transferred quarterly from the Federal
3-34    Tax Fund and deposited into the general fund for general
3-35    use.
3-36    50-32-5.
3-37    (a) Any person liable for any federal excise, income, or
3-38    consumer tax shall remit the tax when due along with the
3-39    federal taxpayer number to the director for deposit into
3-40    the Federal Tax Fund.
3-41    (b) All moneys collected pursuant to subsection (a) of
3-42    this Code section shall be transmitted to the director
-3-
4- 1    who, as a fiduciary agent, shall credit the funds to the
4- 2    Federal Tax Fund on behalf of the person that remitted the
4- 3    tax.
4- 4    (c) The director shall submit to the federal Internal
4- 5    Revenue Service the names and tax identification numbers
4- 6    of, and the amounts deposited by, persons liable for any
4- 7    federal excise, income, or consumer tax so that the
4- 8    Internal Revenue Service can credit the state's taxpayers
4- 9    for federal tax obligations.
4-10    50-32-6.
4-11    (a) Except as provided in Code Section 50-32-4, the
4-12    director shall transfer at the end of each quarter the
4-13    moneys held in the fund, less any interest earned on the
4-14    deposit, to the respective appropriate federal recipient
4-15    in payment of the tax obligations of those persons who
4-16    remitted the tax funds to the director.
4-17    (b) If the federal government imposes sanctions of any
4-18    kind on the state for failing to enact legislation called
4-19    for by federal mandate, a vote shall be taken in the
4-20    General Assembly as to the constitutionality of the
4-21    sanctions.  By a simple majority vote in each house of the
4-22    General Assembly, if the federal government is found to be
4-23    operating beyond the scope of its constitutionally
4-24    delegated powers, and therefore, unconstitutionally, the
4-25    director shall be notified in writing by the Attorney
4-26    General of the vote of the General Assembly, and the
4-27    General Assembly shall instruct the director to carry out
4-28    the procedure specified in subsection (b) of Code Section
4-29    50-32-4.
4-30    (c) Per occurrence, when the state has been legally
4-31    notified in writing by the federal government that it has
4-32    lifted any sanction as specified in subsection (b) of Code
4-33    Section 50-32-4 then, pursuant to subsection (a) of this
4-34    Code section, the director shall resume disbursement of
4-35    funds to the respective appropriate federal recipients at
4-36    the end of the next upcoming quarter.
4-37    50-32-7.
4-38    Any person liable for any federal excise, income, or
4-39    consumer tax who fails to forward federal tax moneys to
4-40    the director shall be subject to penalties assessed
4-41    pursuant to applicable federal or state statutes.
-4-
5- 1    50-32-8.
5- 2    The Governor, members of the General Assembly, judges, the
5- 3    Attorney General, the Secretary of State, the director,
5- 4    the state auditor, and all other state officers and
5- 5    employees shall implement this article regardless of any
5- 6    sanctions, threats, court action, or other pressure
5- 7    brought to bear by federal authorities.
5- 8    50-32-9.
5- 9    If the federal government imposes any sanctions on the
5-10    state while the General Assembly is not in session, the
5-11    Governor shall call the General Assembly into special
5-12    session for the purpose of implementing subsection (b) of
5-13    Code Section 50-32-6.
5-14    50-32-10.
5-15    Any actions by the federal government, its agencies or
5-16    agents, or the Congress of the United States against any
5-17    person in this state for compliance with this article
5-18    shall be considered an action against this state, and this
5-19    state shall make an appropriate response to cause the
5-20    action to cease and desist.  This state shall take all
5-21    necessary measures to recover from the federal government,
5-22    its agencies or agents, or the Congress of the United
5-23    States the reasonable costs of defending the action.
5-24    50-32-11.
5-25    This article shall apply to federal taxes collected after
5-26    the date on which this article takes effect and, because
5-27    the Constitution of the United States of America is and
5-28    has always been the supreme law of the land, this article
5-29    shall be enforced retroactively to repeal any
5-30    unconstitutional federal mandates that have been imposed
5-31    on the state.
5-32    50-32-12.
5-33    The General Assembly, by simple majority vote in both
5-34    houses, shall determine how the moneys transferred from
5-35    the Federal Tax Fund to the general fund, including
5-36    accrued interest, are to be used for the benefit of the
5-37    people of the state.  These moneys shall be used for the
5-38    benefit of the people of Georgia only."
-5-
6- 1                           SECTION 2.
6- 2  This Act shall become effective upon its approval by the
6- 3  Governor or upon its becoming law without such approval.
6- 4                           SECTION 3.
6- 5  All laws and parts of laws in conflict with this Act are
6- 6  repealed.