THE SENATE

S.B. NO.

2719

TWENTY-EIGHTH LEGISLATURE, 2016

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to legislative fiscal impact statements.

 

 

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

 


SECTION 1. The Legislature finds that the health and welfare of this State require governmental fiscal responsibility. During this period of revenue shortfalls and a stagnant economy, it is imperative that measures passed by the Legislature be cost effective.

This Act is designed to make State government more fiscally accountable by informing legislators of all costs associated with certain bills and resolutions.

This Act requires a fiscal impact statement for all proposed legislation which calls for an appropriation, or which will have a significant economic impact upon the State. This Act prohibits any committee of the Legislature from holding hearings on any legislative measure until a fiscal impact statement on that measure has been prepared by the office of the legislative analyst.

SECTION 2. Chapter 21F, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

" _ Requirements for a fiscal impact statement. (a) Every legislative measure that would affect the receipt, expenditure, or allocation of state or local funds, either directly or indirectly, shall have attached to it prior to its consideration by any committee of either house of the legislature a fiscal impact statement which shall include a reliable estimate of the fiscal impact of such measure. The fiscal impact statement shall include an estimate of the immediate and long-range costs of the measure, a listing of any revenue or savings to be generated, and an itemization of costs which reflects the capital expenditures and operating costs needed. A fiscal impact statement shall not constitute a legal attachment of the proposed measure.

(b) The author of a measure requiring a fiscal impact statement shall be responsible for obtaining the required statement from the legislative analyst. The legislative analyst shall be responsible for obtaining, directly or through another agency, the information necessary to complete the fiscal impact statement from the agency best suited to furnish the information. The agency furnishing the information to the legislative analyst shall do so within twenty-four hours of receipt of a request from the legislative analyst. Thereafter, the legislative analyst shall prepare the fiscal impact statement and transmit it to the author of the measure. The legislative analyst, for good cause, may approve an extension of the time within which the information is to be furnished.

(c) Fiscal impact statement forms, which shall consist of two parts, a worksheet and a fiscal effect form, shall be prescribed and distributed by the legislative analyst to the appropriate agencies for the purpose of providing necessary information to the legislative analyst.

The worksheet shall include a breakdown of the expected costs of the measure, such as personnel, materials, supplies, and capital outlay; the anticipated effect of the expenditures or allocation or receipt of funds; and such other pertinent information as the legislative analyst may deem appropriate.

The fiscal effect form shall be factual, brief, and concise, and shall provide an estimate in dollars of the immediate and long-range fiscal effect of the measure. If no dollar estimate is possible, the fiscal effect form shall set forth the reasons therefore. The fiscal effect form shall not contain reference to the merits of the measure.

The name of the agency furnishing the information shall appear at the end of the fiscal impact statement form, and the original of both the worksheet and the fiscal effect form shall be signed by the head of the agency or by his or her designee.

Taking into consideration the fiscal impact statement form prepared by the agency and all other relevant available information, the legislative analyst shall prepare a fiscal impact statement as provided in this section and shall transmit it to the author of the measure as provided in subsection (b). The fiscal impact statement form prepared by the agency shall be preserved by the legislative analyst and a copy thereof shall be transmitted to the author or any other person upon request.

(d) Whenever any committee of either house of the legislature reports any measure with any amendment that alters the fiscal effect of the measure, there shall be attached to the amendment a fiscal impact statement delineating the fiscal effect of the change proposed by the amendment. Whenever a floor amendment that alters the fiscal effect of the measure is proposed without a fiscal impact statement of the fiscal effect of the floor amendment attached thereto, any member of the legislative house in which the floor amendment is proposed may offer a motion that the floor amendment be withdrawn. The floor amendment may be proposed again at any time it would otherwise be in order, provided that the required fiscal impact statement is attached.

(e) Whenever a measure requiring a fiscal impact statement has been reported by any committee of either house of the legislature without a fiscal impact statement, any member may, on the reading of such measure, offer a motion that the measure be deferred until such time as a fiscal impact statement is prepared.

(f) Agencies involved in the preparation of the required information for a fiscal impact statement shall keep in strict confidence the subject matter of the proposed measure and the information provided to the legislative analyst prior to the filing or pre-filing of such measure with the clerk's office of each respective house of the legislature. Violation of this subsection shall be a misdemeanor; provided that the maximum term of imprisonment shall not be more than six months, and the maximum fine shall not be more than $500.

(g) A fiscal impact statement shall not be required for general appropriations bills, bills which appropriate a specific amount, or any measure affecting state funds for retirement purposes.

(h) Notwithstanding the provisions of subsection (g), a fiscal impact statement shall be required for any measure concerning any program wholly or partially funded by federal monies which involves an expenditure of state funds or any legislative appropriation of funds. Such fiscal impact statement shall reflect the immediate and long-range fiscal effect on the State of any such program and shall also include the following information:

(1)    The length of time federal funds are to be provided; and

(2)    The estimated amount of state funds required to continue the program.

Fiscal impact statements required by this subsection shall contain all relevant information contained in other fiscal impact statements."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

 

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Fiscal Impact Statements

 

 

Description:

Requires a fiscal impact statement for any proposed legislation that calls for an appropriation or results in significant fiscal changes for the State. Prohibits hearing on bills and resolutions without a fiscal impact statement prepared by the Office of the Legislative Analyst.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.