REPORT TITLE:
Legislature; Leg. Agencies


DESCRIPTION:
Appropriates funds:  (1) to grant retroactive pay adjustments for
legislative agency employees to maintain parity with other state
employees; (2) for the office of the auditor; (3) for CSG dues to
be expended by LRB; and (4) for the office of information
practices, to be expended by the ombudsman.  Appropriates funds
for legislative analyst under office of the auditor.  Requires
analyst to produce fiscal impact statement.  (HB2024 SD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2024
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                S.D. 2
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

MAKING AN APPROPRIATION TO THE LEGISLATIVE AGENCIES.



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

 1                              Part I
 
 2      SECTION 1.  There is appropriated out of the general
 
 3 revenues of the State of Hawaii to the legislative agencies
 
 4 indicated below the following sums or so much thereof as may be
 
 5 necessary, to fund the retroactive salary increases and other
 
 6 cost adjustments for fiscal years 1997-1998 and 1998-1999,
 
 7 authorized by chapter 89C, Hawaii Revised Statutes, for officers
 
 8 and employees of these agencies excluded from collective
 
 9 bargaining:
 
10      Office of the Auditor                           $65,633
 
11      Ethics Commission                                22,644
 
12      Legislative Reference Bureau                     79,512
 
13      Ombudsman                                        34,321
 
14      This appropriation is necessary to maintain parity with
 
15 other state employees and is based on a settlement for a two-year
 
16 collectively bargained agreement with the exclusive
 
17 representative of bargaining units 3, 4, and 13.  Funds
 
18 appropriated by this section that are not expended or encumbered
 

 
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 1 by June 30, 2001, shall lapse as of that date.
 
 2      SECTION 2.  The sums appropriated by section 1 shall be
 
 3 expended by the respective heads of the legislative agencies for
 
 4 the purposes of section 1 of this Act.
 
 5      SECTION 3.  There is appropriated out of the general
 
 6 revenues of the State of Hawaii the sum of $        , or so much
 
 7 thereof as may be necessary for fiscal year 2000-2001, for
 
 8 studies by the office of the auditor.
 
 9      SECTION 4.  The sum appropriated by section 3 shall be
 
10 expended by the office of the auditor for the purposes of section
 
11 3 of this Act.
 
12      SECTION 5.  There is appropriated out of the general
 
13 revenues of the State of Hawaii the sum of $        , or so much
 
14 thereof as may be necessary for fiscal year 2000-2001, for the
 
15 Council of State Government dues.
 
16      SECTION 6.  The sum appropriated by section 5 shall be
 
17 expended by the legislature reference bureau for the purposes of
 
18 section 5 of this Act.
 
19      SECTION 7.  There is appropriated out of the general
 
20 revenues of the State of Hawaii the sum of $        , or so much
 
21 thereof as may be necessary for fiscal year 2000-2001, for the
 
22 office of information practices.
 

 
 
 
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 1      SECTION 8.  The sum appropriated by section 7 shall be
 
 2 expended by the office of the ombudsman for the purposes of
 
 3 section 7.
 
 4                              Part II
 
 5      SECTION 9.  Section 21F-1, Hawaii Revised Statutes, is
 
 6 amended to read as follows:
 
 7      "[[]21F-1[]]  Purpose.  The legislature finds that most
 
 8 states have a separate fiscal policy office in the legislative
 
 9 branch that works effectively to provide the legislature with
 
10 necessary revenue and expenditure data and analyses from which
 
11 economic and fiscal policies are developed.  In Hawaii, the
 
12 legislature relies on the economic and fiscal analyses of the
 
13 executive branch and private sector.  The legislature believes
 
14 that this dependency creates an inherent conflict of interest
 
15 that precludes the legislature from operating independently.
 
16      Modern legislatures have become sophisticated data gatherers
 
17 and analysts, on par with the executive and judiciary branches.
 
18 Over the last five years, this shift has been accelerated through
 
19 the development of professional, highly specialized legislative
 
20 staff.
 
21      Since Hawaii's legislature meets for only four months of the
 
22 year, it has come to rely heavily on the use of session-only
 

 
 
 
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 1 legislative staff or employees on loan from the executive branch.
 
 2 In 1988, the state house and senate together employed 621 session
 
 3 staff members as compared to 151 permanent employees.  Only New
 
 4 York, the state with the most legislative staff in the country,
 
 5 had more session staff than Hawaii.
 
 6      The purpose of this chapter is to establish a [permanent
 
 7 legislative committee] legislative analyst's office under the
 
 8 office of the auditor for administrative purposes, to provide the
 
 9 legislature with information, facts, and analyses concerning
 
10 fiscal, budgetary, and tax matters of the State.  It is the
 
11 legislature's intent that [the committee, with the assistance of]
 
12 the office of the legislative analyst[,] shall perform
 
13 independent, in-depth [analysis] analyses of the State's
 
14 [budget,] agency budgets, revenues and expenditures, economic
 
15 conditions, and tax policies."
 
16      SECTION 10.  Section 21F-6, Hawaii Revised Statutes, is
 
17 amended to read as follows:
 
18      "[[]21F-6[]]  Office of the legislative analyst
 
19 established.(a)  There is established the office of the
 
20 legislative analyst [to be administered by the committee.  The
 
21 committee shall appoint a legislative analyst who shall serve for
 
22 a period of four years.  The committee, by a three-fourths vote
 

 
 
 
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 1 of its members, may remove the legislative analyst from office,
 
 2 but only for cause.  The committee shall fix the salary of the
 
 3 legislative analyst.] under the office of the auditor for
 
 4 administrative purposes.  The legislature, by a majority vote of
 
 5 each house in joint session, shall appoint the legislative
 
 6 analyst who shall serve for a period of six years and thereafter
 
 7 until a successor shall have been appointed.  The legislature, by
 
 8 two-thirds vote of the members in joint session, may remove or
 
 9 suspend the legislative analyst from office, but only for neglect
 
10 of duty, misconduct, or disability.
 
11      If the legislative analyst dies, resigns, becomes ineligible
 
12 to serve, or is removed or suspended from office, the first
 
13 assistant to the legislative analyst shall become the acting
 
14 legislative analyst until a new one is appointed.
 
15      The salary of the legislative analyst shall be $85,302 a
 
16 year.  The salary of the legislative analyst shall not be
 
17 diminished during the legislative analyst's term of office,
 
18 unless by general law applying to all salaried officers of the
 
19 State.
 
20      (b)  The legislative analyst may employ other clerical and
 
21 technical employees, including a first assistant, as may be
 
22 necessary to carry out the functions of the office.  The
 

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

 
 
 
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 1           the state of the State's economy, including trends and
 
 2           forecasts for consideration by the legislature;
 
 3      (6)  [To conduct] Conduct budget and tax studies and provide
 
 4           general fiscal and budgetary information;
 
 5      (7)  [To review] Review and make recommendations on the
 
 6           operation of state programs in order to appraise the
 
 7           implementation of state laws regarding the expenditure
 
 8           of funds and to recommend means of improving their
 
 9           efficiency; [and]
 
10      (8)  [To recommend] Recommend to the legislature changes in
 
11           the mix of revenue sources for programs, in the
 
12           percentage of state expenditures devoted to major
 
13           programs, and in the role of the legislature in
 
14           overseeing state government expenditures and revenue
 
15           projections[.]; and
 
16      (9)  Prepare and distribute fiscal impact statements in
 
17           accordance with section 21F-   ."
 
18      SECTION 12.  Section 21F-2, Hawaii Revised Statutes, is
 
19 amended by repealing the definition of "committee".
 
20      [""Committee" means the joint legislative budget
 
21 committee."]
 
22      SECTION 13.  Section 21F-3, Hawaii Revised Statutes, is
 

 
 
 
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 1 repealed.
 
 2      ["[21F-3]  Joint legislative budget committee established;
 
 3 purpose.  The joint legislative budget committee is hereby
 
 4 established.  The committee shall ascertain facts and make
 
 5 recommendations to the legislature and to the houses thereof
 
 6 concerning:  the state budget; the revenues and expenditures of
 
 7 the State; the organization and functions of the State, its
 
 8 departments, subdivisions, and agencies; and other matters as may
 
 9 be provided for in the rules of the senate and the rules of the
 
10 house.  The committee shall have a continuing existence and may
 
11 meet, act, and conduct its business at any place within this
 
12 State, during the sessions of the legislature or any recess, and
 
13 in the interim period between sessions."]
 
14      SECTION 14.  Section 21F-4, Hawaii Revised Statutes, is
 
15 repealed.
 
16      ["[21F-4]  Selection of members; co-chairpersons; filling
 
17 vacancies.  The committee shall consist of five members of the
 
18 senate and five members of the house who shall be selected in the
 
19 manner provided for in the rules of the senate and the rules of
 
20 the house.  The president of the senate and the speaker of the
 
21 house shall select the members of the committee, including
 
22 members of the majority leadership, members of the minority
 

 
 
 
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 1 leadership, the chairperson of the senate ways and means
 
 2 committee, and the chairperson of the house finance committee.
 
 3 The chairperson of the senate ways and means committee and the
 
 4 chairperson of the house finance committee shall serve as co-
 
 5 chairpersons of the committee.  Vacancies occurring in the
 
 6 membership of the committee shall be filled in the manner
 
 7 provided for in the rules of the senate and the rules of the
 
 8 house.  A vacancy shall be deemed to exist as to any member of
 
 9 the committee whose term is expiring whenever the member is not
 
10 reelected at the general election."]
 
11      SECTION 15.  Section 21F-5, Hawaii Revised Statutes, is
 
12 repealed.
 
13      ["[21F-5]  Rules.  The committee is authorized to adopt
 
14 rules governing its own proceedings and to create subcommittees
 
15 from its membership and assign to the subcommittees any study,
 
16 inquiry, investigation, or hearing that the committee itself has
 
17 authority to undertake or hold."]
 
18                             Part III
 
19      SECTION 16.  Chapter 21F, Hawaii Revised Statutes, is
 
20 amended by adding a new section to be appropriately designated
 
21 and to read as follows:
 
22      "21F-      Requirements for a fiscal impact statement.  (a)
 

 
 
 
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 1 Every legislative measure that would affect the receipt,
 
 2 expenditure, or allocation of state or local funds, either
 
 3 directly or indirectly, shall have attached to it prior to its
 
 4 consideration by any committee of either house of the
 
 5 legislature, a fiscal impact statement that includes a reliable
 
 6 estimate of the fiscal impact of the measure.
 
 7      (b)  The authors of a measure requiring a fiscal impact
 
 8 statement shall be responsible for obtaining the statement from
 
 9 the legislative analyst.  The legislative analyst shall be
 
10 responsible for obtaining, directly or through the agency best
 
11 suited to furnish the information, such information as may be
 
12 necessary to complete the fiscal impact statement.  The agency
 
13 furnishing the information to the legislative analyst shall do so
 
14 within twenty-four hours.  Thereafter, the legislative analyst
 
15 shall prepare the fiscal impact statement and transmit it to the
 
16 authors of the measure.  The legislative analyst, for good and
 
17 appropriate cause, may approve an extension of the time in which
 
18 the information must be furnished; provided that if the agency
 
19 fails to furnish the information to the legislative analyst
 
20 within the original or extended time period, the legislative
 
21 analyst shall nevertheless proceed with the preparation of the
 
22 fiscal impact statement, noting on the statement itself that the
 

 
 
 
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 1 agency failed to furnish the requested information within the
 
 2 statutory time period.
 
 3      (c)  The following provisions shall govern the preparation
 
 4 and distribution of fiscal impact statements, unless otherwise
 
 5 provided by law:
 
 6      (1)  Fiscal impact statement forms shall consist of two
 
 7           parts, a work sheet and a fiscal effect form, and shall
 
 8           be prepared and distributed by the legislative analyst;
 
 9      (2)  The fiscal effect form shall be factual, brief, and
 
10           concise, and shall provide an estimate in dollars of
 
11           the immediate and long-range fiscal effect of the
 
12           measure.  If no dollar estimate is possible, the fiscal
 
13           impact statement shall set forth the reasons therefor.
 
14           The fiscal impact statement shall not contain any
 
15           references to the merits of the measure;
 
16      (3)  The work sheet shall include a breakdown of:
 
17           (A)  The costs that the measure is expected to cause,
 
18                such as personnel, materials, supplies, and
 
19                capital outlay;
 
20           (B)  The effect of the expenditure, allocation, or
 
21                receipt of funds;
 
22           (C)  Such other information as may be required by rules
 

 
 
 
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 1                adopted by the legislative analyst; and
 
 2           (D)  Such other pertinent information as the
 
 3                legislative analyst may deem appropriate;
 
 4      (4)  The fiscal impact statement shall be prepared in
 
 5           quintuplicate;
 
 6      (5)  The name of the agency furnishing the information
 
 7           required shall appear at the end of the fiscal impact
 
 8           statement, and the original of the work sheet and the
 
 9           fiscal effect form shall be signed by the head of the
 
10           agency or by the head's designee; and
 
11      (6)  Taking into consideration the fiscal impact statement
 
12           prepared by the agency and all other appropriate
 
13           information, the legislative analyst shall prepare a
 
14           fiscal impact statement in the same manner provided in
 
15           this subsection and shall transmit it in quintuplicate
 
16           to the authors as provided in subsection (b).  The
 
17           fiscal impact statement prepared by the agency shall be
 
18           preserved by the legislative analyst and a copy thereof
 
19           shall be transmitted to the authors or any other person
 
20           upon request.
 
21      (d)  Whenever any committee of either house reports any
 
22 measure with any amendment that alters the fiscal effect of the
 

 
 
 
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 1 measure, there shall be attached to the amendment a fiscal impact
 
 2 statement delineating the fiscal effect of the change proposed by
 
 3 the amendment.  This subsection shall apply equally to floor
 
 4 amendments that alter the fiscal effect of the measure.
 
 5      (e)  The legislative analyst may adopt rules in accordance
 
 6 with chapter 91 to carry out the purposes of this section.
 
 7      (f)  Agencies involved in the preparation of the required
 
 8 information for a fiscal impact statement shall keep in strict
 
 9 confidence the subject matter of the proposed measure and the
 
10 information contained in the fiscal note prior to the filing or
 
11 pre-filing of the measure with the clerk's office of each
 
12 respective house, except that the authors of the measure shall be
 
13 furnished a copy of the fiscal impact statement.
 
14      (g)  A fiscal impact statement shall not be required for the
 
15 general appropriations bill, any bill that appropriates a
 
16 specific amount, or any measure affecting state funds for
 
17 retirement purposes.
 
18      (h)  Notwithstanding subsection (g), a fiscal impact
 
19 statement shall be required for any measure concerning any
 
20 program that is wholly or partially funded by federal moneys, and
 
21 that involves an expenditure of state funds or any legislative
 
22 appropriation of funds.  The fiscal impact statement shall
 

 
 
 
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 1 reflect the immediate and long-range fiscal effect of the program
 
 2 on the State, and shall include the following information:
 
 3      (1)  The length of time federal funds are to be provided;
 
 4           and
 
 5      (2)  The probable amount of state funds required to continue
 
 6           the program.
 
 7 The fiscal impact statement shall comply with all rules
 
 8 applicable to, and contain the same kind of information contained
 
 9 in, other fiscal impact statements."
 
10                              Part IV
 
11      SECTION 17.  There is appropriated out of the general
 
12 revenues of the State of Hawaii the sum of $        , or so much
 
13 thereof as may be necessary for fiscal year 2000-2001, to fund
 
14 the office of the legislative analyst.
 
15      SECTION 18.  The sum appropriated shall be expended by the
 
16 legislature for the purposes of this Act.
 
17                              Part V
 
18      SECTION 19.  Statutory material to be repealed is bracketed.
 
19 New statutory material is underscored.
 
20      SECTION 20.  This Act shall take effect on July 1, 2000;
 
21 provided that sections 1 and 2 shall take effect upon approval;
 
22 and further provided that sections 7 and 8 shall take effect only
 

 
 
 
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 1 if H.B. No. 2586, S.D. 1, in any form passed by the legislature,
 
 2 Regular Session of 2000, becomes an Act.