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.  (HB1436 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1436
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
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.  Chapter 21F, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "§21F-     New special or revolving funds.  (a)  Within five
 
 5 days after the deadline for the introduction of bills in each
 
 6 regular legislative session, the clerks of each house of the
 
 7 legislature shall transmit, to the office of the legislative
 
 8 analyst for analysis, copies of all legislative bills that were
 
 9 introduced in their respective houses during that session that
 
10 propose to establish new special or revolving funds.
 
11      The criteria to be used by the office of the legislative
 
12 analyst in analyzing each legislative bill shall include the
 
13 following:
 
14      (1)  Whether the fund reflects a clear link between the
 
15           benefit sought and charges made of the users or
 
16           beneficiaries of the program, as opposed to providing
 
17           the program with an automatic means of support which is
 
18           removed from the normal budget and appropriations
 
19           process; and
 

 
Page 2                                                     1436
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      (2)  Whether the fund has the capacity to be self-
 
 2           sustaining.
 
 3 Each analysis shall set forth the probable effects of the
 
 4 proposed fund and shall also assess alternative forms of funding.
 
 5      (b)  Prior to the deadline for sending all bills to their
 
 6 final committees in the originating body, the office of the
 
 7 legislative analyst shall submit the analysis of each transmitted
 
 8 legislative bill to each house of the legislature.
 
 9      (c)  Subsequent proposals by a legislative committee to
 
10 establish new special or revolving funds shall be reviewed by the
 
11 office of the legislative analyst.  The office of the legislative
 
12 analyst shall submit its analysis of any such proposal to each
 
13 house of the legislature before succeeding or final committee
 
14 action is taken on the bill."
 
15      SECTION 2.  Section 21F-7, Hawaii Revised Statutes, is
 
16 amended by amending subsection (a) to read as follows:
 
17      "(a)  The purpose of the office of the legislative analyst
 
18 shall be:
 
19      (1)  To provide the legislature with research and analysis
 
20           of current and projected state revenues and
 
21           expenditures;
 
22      (2)  To provide the legislature with a report analyzing the
 
23           governor's proposed levels of revenue and expenditures
 

 
Page 3                                                     1436
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           for biennial budgets submitted under chapter 37 as well
 
 2           as other supplemental budget submittals to the
 
 3           legislature by the governor;
 
 4      (3)  To provide an analysis of the impact of the governor's
 
 5           proposed revenue and expenditure plans for the next
 
 6           biennium;
 
 7      (4)  To conduct research matters of economic and fiscal
 
 8           policy and to report to the legislature on the result
 
 9           of the research;
 
10      (5)  To provide economic reports and studies on the state of
 
11           the State's economy, including trends and forecasts for
 
12           consideration by the legislature;
 
13      (6)  To conduct budget and tax studies and provide general
 
14           fiscal and budgetary information;
 
15      (7)  To [review and make recommendations on the operation of
 
16           state programs in order to appraise the implementation
 
17           of state laws regarding the expenditure of funds and to
 
18           recommend means of improving their efficiency;] analyze
 
19           and assess the impact of proposed special and revolving
 
20           funds; and
 
21      (8)  To recommend to the legislature changes in the mix of
 
22           revenue sources for programs, in the percentage of
 
23           state expenditures devoted to major programs, and in
 

 
Page 4                                                     1436
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           the role of the legislature in overseeing state
 
 2           government expenditures and revenue projections."
 
 3      SECTION 3.  Section 23-11, Hawaii Revised Statutes, is
 
 4 repealed.
 
 5      ["[§23-11]  New special or revolving funds.  Within five
 
 6 days after the deadline for the introduction of bills in each
 
 7 legislative session, the clerks of each house of the legislature
 
 8 shall transmit, to the legislative auditor for analysis, copies
 
 9 of all legislative bills that were introduced in their respective
 
10 houses during that session that propose to establish new special
 
11 or revolving funds.
 
12      The criteria to be used by the auditor in analyzing each
 
13 legislative bill shall include, but not be limited to, the extent
 
14 to which the fund:
 
15      (1)  Serves the purpose for which it is being created; and
 
16      (2)  Reflects a clear link between the benefit sought and
 
17           changes made upon the users or beneficiaries of the
 
18           program, as opposed to serving primarily as a means to
 
19           provide the program or users with an automatic means of
 
20           support which is removed from the normal budget and
 
21           appropriations process.
 
22 Each analysis shall set forth the probable effects of the
 
23 proposed fund and shall also assess alternative forms of funding.
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      No later than thirty days prior to the adjournment sine die
 
 2 of each legislative session, the legislative auditor shall submit
 
 3 the analysis of each transmitted legislative bill to each house
 
 4 of the legislature."]
 
 5      SECTION 4.  The legislative auditor shall continue to
 
 6 analyze and assess the impact of proposed special and revolving
 
 7 funds until such time as the office of the legislative analyst is
 
 8 funded and operational.
 
 9      SECTION 5.  Statutory material to be repealed is bracketed.
 
10 New statutory material is underscored.
 
11      SECTION 6.  This Act shall take effect upon its approval.