HOUSE OF REPRESENTATIVES

H.B. NO.

449

TWENTY-SIXTH LEGISLATURE, 2011

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to fiscal notes.

 

 

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

 


     SECTION 1.  The legislature finds that a fiscal note is a legislative document that is meant to provide a reliable estimate of the impact of a bill on state revenues and expenditures to decision makers and the general public.  According to the National Conference of State Legislatures, "Bills that have a fiscal impact may increase or decrease expenditures, may increase or decrease the yield of an existing tax, change personnel requirements, affect levels of services, impose or shift a tax to a new base, or change the funding of an existing program.  Fiscal notes are used by legislators to decide whether or not a proposed bill has merit, to revise a bill or make it less costly or raise more revenues, or to make decisions about the state's budget or revenues."

The legislature also finds that fiscal notes can be a valuable tool for the Hawai`i legislature in making financial decisions in less than ideal economic times and provides added transparency to the decision making process for how the legislature spends taxpayer dollars, and that according to the National Conference of State Legislatures, over 30 states use some form of fiscal notes in their decision making process.

The purpose of this Act is to establish the office of the legislative analyst and the practice of using fiscal notes to properly and transparently estimate the fiscal impact of legislation.

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

     "§  -A  Fiscal notes on legislative bills.  (a) Beginning with the 2012 regular session of the legislature, when a bill is reported from the final committee to which the bill has been referred prior to passage on third reading in either house of the legislature, there shall be attached to the bill a fiscal note as provided in subsection (b), or, if the bill has no fiscal impact, a statement to that effect.

(b)  Fiscal notes shall be prepared in conformity with the requirements of this section by the committee specified in subsection (a), which may request the assistance of the legislative analyst, as well as any affected state departments or agencies in preparing the fiscal note.

(c)  The fiscal note shall contain the following information:

     (1)  The fiscal impact on existing and new programs or activities; provided that the fiscal note shall reflect the estimated cost of the program or activity that is stated in the text of the bill, even if that cost estimate differs from the amount actually being appropriated for that program or activity in the bill at that time;

     (2)  A fiscal impact projection for the current fiscal year and for the five succeeding fiscal years, including an estimate of the amount of the appropriation increase or decrease that would result from enactment of the bill for the current fiscal year and five succeeding fiscal years;

     (3)  The source of funds expected to be utilized by general fund source, federal fund source, or other identified source;

     (4)  The number of new positions that may be required, identified as full-time, part-time, or temporary;

     (5)  An analysis of how the figures in the fiscal note were derived;

     (6)  Any additional information that may be necessary to explain the fiscal note; and

     (7)  The date the fiscal note was prepared; the name of the committee, agency, and persons that prepared the fiscal note; and the state agency, program, or subprogram affected."

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $________ or so much thereof as may be necessary for fiscal year 2011-2012 and the same sum or so much thereof as may be necessary for fiscal year 2012-2013 for the operations of the legislative analyst.

     The sums appropriated shall be expended by the office of the legislative analyst for the purposes of this Act.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval; provided that section 3 shall take effect on July 1, 2011.

 

 

INTRODUCED BY:

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Report Title:

Fiscal notes

 

Description:

Requires disclosure of the cost of a proposal to the taxpayer  for any bill at certain points in the legislative process, to or, if no fiscal impact, a statement to that effect.  Specifies disclosure requirements.  Appropriates funds.

 

 

 

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