REPORT TITLE:
Legislative Analyst and Auditor


DESCRIPTION:
Appropriates funds for the office of the legislative analyst and
Auditor.  Transfers responsibility for analyzing new special and
revolving funds from Auditor to Legislative Analyst.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           1242
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO THE LEGISLATURE.



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

 1      SECTION 1.  In recognition that the legislature needs its
 
 2 own separate fiscal policy office to provide legislators with the
 
 3 information needed to develop sound economic and fiscal policies
 
 4 for the State, the office of the legislative analyst was
 
 5 established in Act 347, Session Laws of Hawaii 1990.
 
 6      Other states have established nonpartisan, highly
 
 7 specialized legislative fiscal analysis offices, in addition to
 
 8 the professional staffs of each chamber's money committees, to
 
 9 review executive branch proposals and to appraise the performance
 
10 of the executive branch in administering legislative enactments.
 
11      Since the legislature meets for only four months of the
 
12 year, it has come to rely heavily on the use of session-only
 
13 staff or employees on loan from the executive branch.  Hawaii is
 
14 the only state in the nation utilizing staff on temporary loan
 
15 from executive agencies to support the work of its money
 
16 committees.
 
17      As a result, the legislature has been at a disadvantage in
 
18 fulfilling its trust to the people of the State to ensure that
 
19 approved appropriations are executed in compliance with
 

 
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 1 legislative policy.  The legislature can provide effective
 
 2 legislative oversight only if it has its own capacity to review
 
 3 and analyze the budget, state economic conditions, and overall
 
 4 tax structure and attendant policies.
 
 5      Although the office of the legislative analyst was
 
 6 established statutorily, it has yet to be implemented.  More than
 
 7 ever before, it is critical that this office be made operational
 
 8 to enable the legislature to address the fiscal challenges facing
 
 9 the State.
 
10      The purpose of this Act is to appropriate the funds
 
11 necessary to implement the provisions of Act 347, Session Laws of
 
12 Hawaii 1990, which established the office of the legislative
 
13 analyst, and to amend that law to require the legislative analyst
 
14 to consider additional factors in performing the duties of that
 
15 office; including the use of performance audits, public-private
 
16 partnerships, and joint state-county projects to stretch public
 
17 dollars.  This Act also provides for the legislative auditor to
 
18 be fiber-optically connected to all buildings in the state civic
 
19 center.
 
20      SECTION 2.  Chapter 21F, Hawaii Revised Statutes, is amended
 
21 by adding a new section to be appropriately designated and to
 
22 read as follows:
 
23      "21F-     New special or revolving funds.  Within five days
 

 
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                                     S.B. NO.           1242
                                                        
                                                        

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

 
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                                     S.B. NO.           1242
                                                        
                                                        

 
 1 amended by amending subsection (b) to read as follows:
 
 2      "(b)  In performing the duties under subsection (a), the
 
 3 legislative analyst shall consider, among other things:
 
 4      (1)  The relative dependence on state tax revenues, federal
 
 5           funds, and user fees to support state-funded programs,
 
 6           and whether the existing mix of revenue sources is
 
 7           appropriate, given the purposes of the programs;
 
 8      (2)  Focusing on departmental outcomes as measured by
 
 9           tangible performance audits;
 
10      (3)  Leveraging resources to stretch public dollars such as
 
11           public-private partnerships and joint state-county
 
12           projects;
 
13      (4)  Purchasing more services in a cost-effective manner;
 
14      (5)  Reducing or eliminating unnecessary procedures and red
 
15           tape to streamline government services, combined with
 
16           increased flexibility for departments and agencies
 
17           willing to try new approaches;
 
18     [(2)] (6)  The relative percentages of state expenditures
 
19           that are devoted to major programs such as education,
 
20           assistance to local government, aid to individuals,
 
21           state agencies and institutions, and debt service; and
 
22     [(3)] (7)  The role of the legislature in overseeing state
 
23           government expenditures, including legislative
 

 
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                                     S.B. NO.           1242
                                                        
                                                        

 
 1           appropriation of money from the general fund,
 
 2           legislative appropriation of money from funds other
 
 3           than the general fund, state agency receipt of money
 
 4           into revolving and other dedicated funds and
 
 5           expenditure of money from these funds, and state agency
 
 6           expenditure of federal funds."
 
 7      SECTION 4.  Section 23-11, Hawaii Revised Statutes, is
 
 8 repealed.
 
 9      "[[23-11]  New special or revolving funds.  Within five
 
10 days after the deadline for the introduction of bills in each
 
11 legislative session, the clerks of each house of the legislature
 
12 shall transmit, to the legislative auditor for analysis, copies
 
13 of all legislative bills that were introduced in their respective
 
14 houses during that session that propose to establish new special
 
15 or revolving funds.
 
16      The criteria to be used by the auditor in analyzing each
 
17 legislative bill shall include, but not be limited to, the extent
 
18 to which the fund:
 
19      (1)  Serves the purpose for which it is being created; and
 
20      (2)  Reflects a clear link between the benefit sought and
 
21           changes made upon the users or beneficiaries of the
 
22           program, as opposed to serving primarily as a means to
 
23           provide the program or users with an automatic means of
 

 
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                                     S.B. NO.           1242
                                                        
                                                        

 
 1           support which is removed from the normal budget and
 
 2           appropriations process.
 
 3 Each analysis shall set forth the probable effects of the
 
 4 proposed fund and shall also assess alternative forms of funding.
 
 5      No later than thirty days prior to the adjournment sine die
 
 6 of each legislative session, the legislative auditor shall submit
 
 7 the analysis of each transmitted legislative bill to each house
 
 8 of the legislature."]
 
 9      SECTION 5.  There is appropriated out of the general
 
10 revenues of the State of Hawaii the sum of $350,000, or so much
 
11 thereof as may be necessary for fiscal year 1999-2000, for the
 
12 staffing, operating, and equipping of the office of the
 
13 legislative analyst.  The sum appropriated shall be expended by
 
14 the office of the legislative analyst for the purposes of this
 
15 Act.
 
16      SECTION 6.  There is appropriated out of the general
 
17 revenues of the State of Hawaii the sum of $12,300, or so much
 
18 thereof as may be necessary for fiscal year 1999-2000, to connect
 
19 the office of the auditor to all buildings within the state civic
 
20 center via a fiber-optic cable system.  The sum appropriated
 
21 shall be expended by the department of accounting and general
 
22 services for the purposes of this Act.
 
23      SECTION 7.  Statutory material to be repealed is bracketed.
 

 
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                                     S.B. NO.           1242
                                                        
                                                        

 
 1 New statutory material is underscored.
 
 2      SECTION 8.  This Act shall take effect on July 1, 1999.
 
 3 
 
 4                              INTRODUCED BY:______________________