HB2022

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, non-partisan 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 legislative 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 committee and legislative analyst office has not been implemented or funded since their inception.

The purpose of this Act is to:

(1) Establish the legislative budget office to provide reports and notes on the fiscal impact of legislation appearing before the legislature; and

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

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

Legislative budget office

§ -1 Legislative budget office; director, appointment, tenure, removal, compensation, vacancy. (a) There is established a legislative budget office. The legislature, by a majority vote of each house in joint session, shall appoint a director for the office who shall serve for a period of six years and thereafter until a successor shall have been appointed. The legislature, by two-thirds vote of the members in joint session, may remove or suspend the director from office but only for neglect of duty, misconduct, or disability.

(b) If the director dies, resigns, becomes ineligible to serve, or is removed or suspended from office, the first assistant to the director shall become the acting director until a new director is appointed.

(c) The salary of the director shall be the same as the salary of the director of the legislative reference bureau. The salary of the director shall not be diminished during the director's term of office, unless by general law applying to all salaried officers of the State.

§ -2 Assistant; staff. (a) The director shall appoint a first assistant and other employees as may be necessary to carry out the functions of the office. All employees, including the first assistant, shall be hired by the director and shall serve at the director's pleasure.

(b) In determining the salary of the employees of the office, the director shall consult with the department of human resources development; provided that the salary of the first assistant shall not be more than ninety-two per cent of the salary of the director.

(c) The director and the director's full-time staff shall be entitled to participate in any employee benefit program plan or privilege.

§ -3 Duties. (a) In any regular session of the legislature, if a bill introduced appears to affect the revenues or expenditures of the State or a county, the legislative budget office shall prepare a fiscal analysis of the bill before the bill is:

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

(2) Taken up for third reading and final reading by either house of the legislature.

(b) 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.

(1) The primary introducer of the bill;

(2) Each standing committee member to which a bill is referred; and

(3) Each member of the house that is considering the bill for third reading and final reading.

(d) In preparing a fiscal analysis, the legislative budget office may request any state or county department, office, or agency to provide any of the following information:

(1) An estimate, in dollars, of the amount by which the bill would increase or decrease the revenues or expenditures received or made by the agency, officer, or entity; and

(2) Any other information the legislative budget office considers necessary for it to understand or explain the fiscal effect of the bill.

(e) An agency, officer, or entity shall comply with a request pursuant to subsection (d) within five days after it receives the request. The legislative budget office shall specify the manner of compliance in its request, and if necessary, may specify a longer period of time than five days for compliance. The legislative budget office may consider any information provided in preparing a fiscal analysis.

(f) The failure of the legislative budget office to prepare a fiscal analysis before a bill is taken up for consideration by the house or senate committees, or by either houses for third reading or final reading shall not be construed to impair the validity of any bill passed by either house of the legislature.

§ -4 Publication of fiscal analyses and reports. (a) Any fiscal analysis produced by the legislative budget office for a bill up for consideration shall be a legislative document attached to the bill and made available to the public through the legislature's website.

(b) The legislative budget office shall annually compile 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."

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 2024-2025 for the establishment and implementation of the legislative budget office.

The sum appropriated shall be expended by the legislature for the purposes of this Act.

SECTION 5. In accordance with section 9 of article VII of the Hawaii State Constitution and sections 37‑91 and 37‑93, Hawaii Revised Statutes, the legislature has determined that the appropriations contained in H.B. No. , will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. In addition, the appropriation contained in this Act will cause the general fund expenditure ceiling for fiscal year 2024‑2025 to be further exceeded by $ or per cent. The combined total amount of general fund appropriations contained in only these two Acts will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. The reasons for exceeding the general fund expenditure ceiling are that:

(1) The appropriation made in this Act is necessary to serve the public interest; and

(2) The appropriation made in this Act meets the needs addressed by this Act.

SECTION 6. This Act shall take effect on July 1, 2024.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2022
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII