REPORT TITLE: 
Fiscal impact statement


DESCRIPTION:
Requires a reliable estimate of cost or fiscal impact statement
of any proposed legislation that calls for an appropriation or
which will result in significant fiscal changes for the State.
This Act prohibits any committee of the legislature from holding
hearings on any bill or resolution until a fiscal impact
statement on that bill or resolution has been prepared by the
Office of the Legislative Analyst.

 
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THE SENATE                              S.B. NO.           2038
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                     A BILL FOR AN ACT

RELATING TO LEGISLATIVE FISCAL IMPACT STATEMENTS.



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


 1      SECTION 1. This Act is intended to make state government
 
 2 more fiscally accountable by informing members of both Houses of
 
 3 all costs associated with certain bills.
 
 4      This Act requires a fiscal impact statement for proposed
 
 5 legislation which calls for: an appropriation; and/or which may
 
 6 have a significant economic impact upon the State.  It prohibits
 
 7 any committee of the legislature from holding hearings on any
 
 8 legislative measure until a fiscal impact statement on that
 
 9 measure has been prepared by the Office of Legislative Analyst.
 
10 The fiscal impact statement must contain an estimate of the
 
11 immediate and long-range costs of the measure, as well as a
 
12 listing of any revenue or savings it will generate.  Costs are
 
13 itemized in the fiscal note to reflect the capital expenditures
 
14 and operating costs needed to implement the Act.
 
15      SECTION 2.  Chapter 21F, Hawaii Revised Statutes, is amended
 
16 by adding a new section to be appropriately designated and to
 
17 read as follows:
 

 
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 1      "§21F-      Requirements for a fiscal impact statement.  (a)
 
 2 Every legislative measure that would affect the receipt,
 
 3 expenditure, or allocation of state or local funds, either
 
 4 directly or indirectly, shall have attached to it prior to its
 
 5 consideration by any committee of either House of the legislature
 
 6 a fiscal impact statement which shall include a reliable estimate
 
 7 of the fiscal impact of such measure.  A fiscal impact statement
 
 8 shall not constitute a legal attachment of the proposed measure.
 
 9      (b)  The author of a measure requiring a fiscal impact
 
10 statement shall be responsible for obtaining the required
 
11 statement from the legislative analyst.  The legislative analyst
 
12 shall be responsible for obtaining, directly or through another
 
13 agency, the information necessary to complete the fiscal impact
 
14 statement from the agency best suited to furnish the information.
 
15 The agency furnishing the information to the legislative analyst
 
16 shall do so within 24 hours; thereafter, the legislative analyst
 
17 shall prepare the fiscal impact statement and transmit it to the
 
18 author of the measure.  The legislative analyst, for good and
 
19 appropriate cause, may approve an extension of the time within
 
20 which the information is to be furnished.
 
21      (c)  (1)  Fiscal impact statement forms, which shall consist
 
22           of two parts, a work sheet and a fiscal effect form,
 
23           shall be prepared and distributed by the legislative
 
24           analyst to the appropriate agencies.
 
25           (2)  The fiscal effect form shall be factual, brief,
 
26           and concise, and shall provide an estimate in dollars
 
27           of the immediate and long-range fiscal effect of the
 
28           Measure.  If no dollar estimate is possible, the fiscal
 
29           impact statement shall set forth the reasons therefor.
 
30           The fiscal impact statement shall not contain reference
 
31           to the merits of the measure.
 
32           (3)  The work sheet shall include a breakdown of the
 
33           costs that the measure is expected to cause, such as
 
34           personnel, materials, supplies, and capital outlay, the
 
35           effect of expenditures or allocation or receipt of
 
36           funds, such other information as is required by rules
 
37           and regulations which may be adopted by the legislative
 
38           analyst, and such other pertinent information as the
 
39           legislative analyst may deem appropriate.
 
40           (4)  The fiscal impact statement shall be prepared in
 
41           quintuplicate
 
42            (5), and the name of the agency furnishing the
 
43           information required shall appear at the end of the
 
44           fiscal impact statement and the original of both the
 
45           work sheet and the fiscal effect form shall be signed
 
46           by the head of the agency or by the agency's head's
 
47           designee.
 
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 1           (6)  Taking into consideration the fiscal impact
 
 2           statement prepared by the agency and all other relevant
 
 3           information, the legislative analyst shall prepare a
 
 4           fiscal impact statement in the same manner as provided
 
 5           in this section and shall transmit it in quintuplicate
 
 6           to the author as provided in subsection (b).  The
 
 7           fiscal impact statement prepared by the agency shall be
 
 8           preserved by the legislative analyst and a copy thereof
 
 9           shall be transmitted to the author or any other person
 
10           upon request.
 
11      (d)  Whenever any committee of either house reports any
 
12 measure with any amendment which alters the fiscal effect of the
 
13 measure, there shall be attached to the amendment a fiscal impact
 
14 statement delineating the fiscal effect of the change proposed by
 
15 the amendment.  Whenever a floor amendment that alters the fiscal
 
16 effect of the measure is proposed without a fiscal impact
 
17 statement of the fiscal effect of such amendment, any member of
 
18 the house in question may offer a motion that the amendment be
 
19 withdrawn.  The amendment may be proposed again at any time it
 
20 would otherwise be in order, provided that the required fiscal
 
21 impact statement is attached.
 
22      (e)  Whenever a measure requiring a fiscal impact statement
 
23 has been reported by any committee of either house of the
 

 
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 1 legislature without a fiscal note, any member may, on the reading
 
 2 of such measure, offer a motion that the measure be deferred
 
 3 until such time as a fiscal impact statement is prepared.
 
 4      (f)  Agencies involved in the preparation of the required
 
 5 information for a fiscal impact statement shall keep in strict
 
 6 confidence the subject matter of the proposed measure and the
 
 7 information contained in the fiscal note prior to the filing or
 
 8 pre-filing of such measure with the clerk's office of each
 
 9 respective house, except that the authors of the measures shall
 
10 be furnished a copy of the fiscal impact statement.  Any person
 
11 who violates any provision of this section shall be fined not
 
12 more than $500 or imprisoned not more than six months, or both.
 
13      (g)  A fiscal impact statement shall not be required for the
 
14 general appropriations bill, any bill which appropriates a
 
15 specific amount, nor any measure affecting state funds for
 
16 retirement purposes.
 
17      (h)  Notwithstanding the provisions of subsection (g), a
 
18 fiscal impact statement shall be required for any measure
 
19 concerning any program wholly or partially funded by federal
 
20 monies which involves an expenditure of state funds or any
 
21 legislative appropriation of funds.  Such fiscal impact statement
 
22 shall reflect the immediate and long-range fiscal effect on the
 
23 state of any such program and shall also include the following
 

 
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 1 information:
 
 2           (1)  The length of time federal funds are to be
 
 3           provided; and
 
 4           (2)  The probable amount of state funds required to
 
 5           continue the program.  Such fiscal impact statements
 
 6           shall comply with all rules and contain all the
 
 7           information contained in other fiscal impact
 
 8           statements."
 
 9      SECTION 3.  New statutory material is underscored.
 
10      SECTION 4.  This Act shall take effect upon its approval.
 
11 
 
12 
 
13                         INTRODUCED BY:___________________________
 

 
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