REPORT TITLE:
Legislative Analyst


DESCRIPTION:
Establishes the office of the legislative analyst as a
legislative service agency and repeals the joint legislative
budget committee.  Provides for the preparation and distribution
of fiscal impact statements by the legislative analyst.  (SB2544
SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2544
THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO THE LEGISLATIVE ANALYST.



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

 1                              Part I
 
 2      SECTION 1.  Section 21F-1, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "[[]§21F-1[]]  Purpose.  The legislature finds that most
 
 5 states have a separate fiscal policy office in the legislative
 
 6 branch that works effectively to provide the legislature with
 
 7 necessary revenue and expenditure data and analyses from which
 
 8 economic and fiscal policies are developed.  In Hawaii, the
 
 9 legislature relies on the economic and fiscal analyses of the
 
10 executive branch and private sector.  The legislature believes
 
11 that this dependency creates an inherent conflict of interest
 
12 that precludes the legislature from operating independently.
 
13      Modern legislatures have become sophisticated data gatherers
 
14 and analysts, on par with the executive and judiciary branches.
 
15 Over the last five years, this shift has been accelerated through
 
16 the development of professional, highly specialized legislative
 
17 staff.
 
18      Since Hawaii's legislature meets for only four months of the
 
19 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 to provide
 
 8 the legislature with information, facts, and analyses concerning
 
 9 fiscal, budgetary, and tax matters of the State.  It is the
 
10 legislature's intent that [the committee, with the assistance of]
 
11 the office of the legislative analyst[,] shall perform
 
12 independent, in-depth [analysis] analyses of the State's
 
13 [budget,] agency budgets, revenues and expenditures, economic
 
14 conditions, and tax policies."
 
15      SECTION 2.  Section 21F-6, Hawaii Revised Statutes, is
 
16 amended to read as follows:
 
17      "[[]§21F-6[]]  Office of the legislative analyst
 
18 established.(a)  There is established the office of the
 
19 legislative analyst [to be administered by the committee.  The
 
20 committee shall appoint a legislative analyst who shall serve for
 
21 a period of four years.  The committee, by a three-fourths vote
 
22 of its members, may remove the legislative analyst from office,
 

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

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

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

 


 

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

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

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

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

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

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

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