Requires legislative fiscal impact notes to include objective calculations of anticipated economic impacts for next three years on state or subdivisions; repealer

6 Co-sponsors

• John A. DeFrancisco
• Rich Funke
• Patrick M. Gallivan
• William J. Larkin Jr.
• Michael H. Ranzenhofer
• Susan Serino

BILL NUMBER:S2272

Title of bill

An act to amend the legislative law, in relation to fiscal impact notes on bills and to repeal certain provisions of such law relating thereto

Purpose

To expand disclosure requirements for fiscal impact notes attached to proposed legislation.

Summary of provisions

Repeals sections 51 of the legislative law and inserts a new section 51 to require the standing committees of the senate and assembly, prior to reporting a bill, to append to such bill a fiscal impact note describing anticipated economic impacts of such bill to the state and any political subdivision for the three fiscal years following enactment of such legislation.

Justification

This Legislature considers many thousands of bills each session, many of which entail direct or indirect fiscal impacts on political subdivisions of the state. The legislative law requires sponsors of bills to describe their fiscal impacts in sponsors' memoranda. These brief statements often fail to identify the anticipated economic impacts of legislative proposals. As a result, members vote on bills about which they may have only partial information, causing state and local finances to be managed in an uncertain mariner.

The state of California, operating in a political and economic environment similar to that of New York, requires most legislative proposals to undergo objective analyses of expected fiscal impacts for each of three fiscal years following implementation. The California Assembly and Senate attach to all legislation explicit fiscal memoranda prepared by the fiscal committees of the respective legislative houses and distributed to committees and lawmakers when bills come before them. This bill is based on regulations in California and other states governing disclosure of fiscal impacts.

Under this chapter, the standing committee to which a bill is referred must, prior to reporting such bill, prepare an objective fiscal statement detailing the economic impact of the bill on the state, county or local governments, school districts or any other political entities which the bill may affect. This statement, prepared with the advice of the appropriate fiscal committee of that house, will be attached to the bill when reported by the standing committee, and will remain a part of the bill throughout the legislative process. This will help lawmakers make fully considered decisions on managing the legislative and economic affairs of the state.

This bill does NOT require cost-benefit analysis, nor govern regulations promulgated by state agencies. Rather, this bill simply requires a frank description of the economic impacts of bills to be

given to lawmakers to help them balance social and economic priorities. Lawmakers should know what expense or savings will result from enacting legislation put before them. Expanding fiscal note analysis and disclosure accomplishes this important precursor to sound fiscal management.

Legislative history

2013-14 - S. 1968 - Investigations & Government Operations Committee/A. 3480 Government Operations Committee.

Fiscal implications

Potential savings to the state and its political subdivisions through more complete disclosure of proposed expenditure prior to adopting bills with fiscal impacts.

Effective date

First of January next succeeding the date the bill becomes a law.