REPORT TITLE:
Fiscal and Budget Analysis


DESCRIPTION:
Transfers the function of analyzing and assessing the impact of
proposed special and revolving funds from the auditor to the
legislative analyst.  Requires the auditor to keep performing
this function until such time as the office of the legislative
analyst is funded and operational.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                            1436        
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO LEGISLATIVE FISCAL AND BUDGET ANALYSIS.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 21F-7, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (a) to read as follows:
 
 3      "(a)  The purpose of the office of the legislative analyst
 
 4 shall be:
 
 5      (1)  To provide the legislature with research and analysis
 
 6           of current and projected state revenues and
 
 7           expenditures;
 
 8      (2)  To provide the legislature with a report analyzing the
 
 9           governor's proposed levels of revenue and expenditures
 
10           for biennial budgets submitted under chapter 37 as well
 
11           as other supplemental budget submittals to the
 
12           legislature by the governor;
 
13      (3)  To provide an analysis of the impact of the governor's
 
14           proposed revenue and expenditure plans for the next
 
15           biennium;
 
16      (4)  To conduct research matters of economic and fiscal
 
17           policy and to report to the legislature on the result
 
18           of the research;
 
19      (5)  To provide economic reports and studies on the state of
 

 
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 1           the State's economy, including trends and forecasts for
 
 2           consideration by the legislature;
 
 3      (6)  To conduct budget and tax studies and provide general
 
 4           fiscal and budgetary information;
 
 5      (7)  To [review and make recommendations on the operation of
 
 6           state programs in order to appraise the implementation
 
 7           of state laws regarding the expenditure of funds and to
 
 8           recommend means of improving their efficiency;] analyze
 
 9           and assess the impact of proposed special and revolving
 
10           funds; and
 
11      (8)  To recommend to the legislature changes in the mix of
 
12           revenue sources for programs, in the percentage of
 
13           state expenditures devoted to major programs, and in
 
14           the role of the legislature in overseeing state
 
15           government expenditures and revenue projections."
 
16      SECTION 2.  Chapter 21F, Hawaii Revised Statutes, is amended
 
17 by adding a new section to be appropriately designated and to
 
18 read as follows:
 
19      "21F-     New special or revolving funds.  (a)  Within five
 
20 days after the deadline for the introduction of bills in each
 
21 regular legislative session, the clerks of each house of the
 
22 legislature shall transmit, to the office of the legislative
 
23 analyst for analysis, copies of all legislative bills that were
 

 
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 1 introduced in their respective houses during that session that
 
 2 propose to establish new special or revolving funds.
 
 3      The criteria to be used by the office of the legislative
 
 4 analyst in analyzing each legislative bill shall include the
 
 5 following:
 
 6      (1)  Whether the fund reflects a clear link between the
 
 7           benefit sought and charges made of the users or
 
 8           beneficiaries of the program, as opposed to providing
 
 9           the program with an automatic means of support which is
 
10           removed from the normal budget and appropriations
 
11           process; and
 
12      (2)  Whether the fund has the capacity to be self-
 
13           sustaining.
 
14 Each analysis shall set forth the probable effects of the
 
15 proposed fund and shall also assess alternative forms of funding.
 
16      (b)  Prior to the deadline for sending all bills to their
 
17 final committees in the originating body, the office of the
 
18 legislative analyst shall submit the analysis of each transmitted
 
19 legislative bill to each house of the legislature."
 
20      SECTION 3.  Section 23-11, Hawaii Revised Statutes, is
 
21 repealed.
 
22      ["[23-11]  New special or revolving funds.  Within five
 
23 days after the deadline for the introduction of bills in each
 

 
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 1 legislative session, the clerks of each house of the legislature
 
 2 shall transmit, to the legislative auditor for analysis, copies
 
 3 of all legislative bills that were introduced in their respective
 
 4 houses during that session that propose to establish new special
 
 5 or revolving funds.
 
 6      The criteria to be used by the auditor in analyzing each
 
 7 legislative bill shall include, but not be limited to, the extent
 
 8 to which the fund:
 
 9      (1)  Serves the purpose for which it is being created; and
 
10      (2)  Reflects a clear link between the benefit sought and
 
11           changes made upon the users or beneficiaries of the
 
12           program, as opposed to serving primarily as a means to
 
13           provide the program or users with an automatic means of
 
14           support which is removed from the normal budget and
 
15           appropriations process.
 
16 Each analysis shall set forth the probable effects of the
 
17 proposed fund and shall also assess alternative forms of funding.
 
18      No later than thirty days prior to the adjournment sine die
 
19 of each legislative session, the legislative auditor shall submit
 
20 the analysis of each transmitted legislative bill to each house
 
21 of the legislature."]
 
22      SECTION 3.  The auditor shall continue to analyze and assess
 
23 the impact of proposed special and revolving funds until such
 

 
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 1 time as the office of the legislative analyst is funded and
 
 2 operational.
 
 3      SECTION 4.  Statutory material to be repealed is bracketed.
 
 4 New statutory material is underscored.
 
 5      SECTION 5.  This Act shall take effect upon its approval.
 
 6 
 
 7                           INTRODUCED BY:  _______________________