SB1081 SD1

SECTION 1. The legislature finds that the work of the legislature is hampered by a lack of timely fiscal analysis regarding the impact of proposed legislation on the revenues and expenditures of the State. Without a system of neutral fact-finding and fiscal analysis, the work of estimating the fiscal impact of legislation falls upon the shoulders of the members of the legislature and their staff, individuals who may or may not possess the skills and training needed for such an endeavor. Reports on the fiscal impact of legislation produced by qualified personnel from a neutral, nonpartisan point of view would serve as an important tool for the legislature in the performance of its duties.

The legislature further finds that fiscal reports of legislation serve the interests of the public by providing an additional resource to inform and educate the public on the fiscal impact of the various proposals in the legislative process. The reports would promote transparency and help demystify the legislative process for the public.

The legislature further finds that the existence of various legislative budget offices, whose duties involve the production of fiscal notes and reports on the fiscal impact of proposed legislation, at the federal and state level demonstrate the utility and practicability of establishing a legislative budget office within the legislature.

The legislature also finds that Act 347, Session Laws of Hawaii 1990, established a permanent joint legislative budget committee, with the assistance of an office of the legislative analyst, to provide the legislature with information, facts, and analyses concerning fiscal, budgetary, and tax matters of the State. However, the joint legislative budget committee and office of the legislative analyst have not been implemented or funded since their inception.

Accordingly, the purpose of this Act is to:

(1) Require the department of budget and finance to conduct a feasibility study that includes the costs associated with the establishment and implementation of a legislative budget office and submit a report to the legislature;

(2) Repeal the existing non-functional joint legislative budget committee and office of the legislative analyst.

SECTION 2. (a) The department of budget and finance shall conduct a feasibility study that includes the costs associated with the establishment and implementation of a legislative budget office. The study shall examine:

(1) The costs associated with the resources that would be required to operate a legislative budget office, including office space and equipment;

(2) The need for, and estimated cost of, additional staff positions with benefits;

(3) The amount of time needed to implement a legislative budget office;

(b) In conducting the feasibility study, the department of budget and finance shall consider the duties of the legislative budget office, which shall include:

(1) Preparing a fiscal analysis of any bill introduced during the regular session of the legislature if the bill appears to affect the revenues or expenditures of the State or a county before the bill is:

(A) Recommended for passage by each house of representatives standing committee or the senate standing committee to which the bill is referred; and

(B) Taken up for third reading and final reading by either house of the legislature;

provided that the fiscal analysis shall include an estimate, in dollars, of the amount by which the bill would increase or decrease revenues or expenditures and any other information the legislative budget office considers necessary to explain the fiscal effect of the bill;

(2) Distributing copies of a fiscal analysis to:

(A) The primary introducer of the bill;

(B) Each member of the standing committees to which the bill is referred; and

(3) Requesting any state or county department, office, or agency to provide pertinent information to preparing a fiscal analysis;

(4) Making the fiscal analysis available to the public through the legislature's website; and

(5) Annually compiling a volume of all completed fiscal analyses and any other reports published by the legislative budget office to be delivered to the legislative reference bureau reference library.

(c) The department of budget and finance shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2027.

SECTION 3. Chapter 21F, Hawaii Revised Statutes, is repealed.

SECTION 4. 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 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for a feasibility study on the establishment and implementation of a legislative budget office.

The sums appropriated shall be expended by the department of budget and finance for the purposes of this Act.

SECTION 5. This Act shall take effect on January 1, 2491.

THE SENATE	S.B. NO.	1081
THIRTY-THIRD LEGISLATURE, 2025		S.D. 1
STATE OF HAWAII