JLBC; economic impact
reports
HB 2619 requires the Joint Legislative Budget Committee (JLBC) Staff to prepare an Economic Impact Report on any proposed legislation when requested to do so by any member of the Legislature.
· Requires the Joint Legislative Budget Committee (JLBC) Staff to provide an Economic Impact Report (Report) on any proposed legislation if requested to do so by any member of the Legislature. That report must contain:
· An analysis that identifies and describes any mandates and expected direct costs of $100,000 or more to all private entities expected to comply with the mandate.
· An identification of any reduction in existing appropriations, any reductions in direct spending or increases in revenues or fees contained in the legislation.
· Identification of existing sources of state assistance that may help private entities in meeting the direct costs of the mandate.
· Defines “direct costs” as the aggregate estimated amounts that all private entities will be required to spend to comply with a mandate, not including:
· Amounts private entities would spend to comply with or administer all applicable laws and programs that existed before the adoption of the mandate, or
· Expenditures to the extent that they will be offset by any direct savings that private entities may realize as a result of their compliance during the time frames for compliance as specified in the mandate or due to other changes in state law that are contained in the same legislation and that govern the same activity affected by the mandate.
· Defines “mandate” as any provision in proposed legislation that would impose an expenditure on private entities.
· Requires that a written or electronic copy of the preliminary Report be provided to each member of the Legislature before the bill’s first committee hearing.
· Requires that the Report be submitted to the President of the Senate or the Speaker of the House of Representatives before the 3rd Reading of that legislation in its House of origin.
· Allows the Speaker or the President to waive the requirement that the Report be submitted before 3rd Reading. In this case, the Report must be completed before the legislation is considered by committee in the second House.
· Allows a Report exemption for any legislation that (1) enforces state or federal constitutional rights, (2) establishes or enforces civil rights defined is state statute or (3) requires compliance with accounting and auditing procedures with respect to monies or property provided by the state. Exemptions are also granted to legislation which the JLBC Staff determines has mandated costs of less than $100,000 or which are designated as emergency measures.
· Contains an intent section stating the Legislature’s desire to, through the requirements of this act, more fully and completely understand the impact of proposed legislation and its accompanying mandates on the private sector and identify ways the Legislature can assist the private sector in dealing with those mandates.
HB 2619 was amended in the Appropriations Committee as follows:
· Removes language requiring that a written or electronic copy of a preliminary economic impact report be submitted before a bill’s first committee hearing.
· Additionally requires that the JLBC Staff prepare a “State Fiscal Analysis” for any bill if requested to do so by a member.
· Allows the Speaker or President to waive the requirement that the State Fiscal Analysis be prepared and submitted before the 3rd Reading of a bill in it House of origin.
· Increases from $100,000 to $1,000,000 the financial or fiscal cost threshold which legislation must reach in order to require the completion of an economic impact report on a bill.
· Appropriates $100,000 from the state general fund in FY 2001-2002 and FY 2002-2003 to JLBC Staff for the purposes of contracting with economic consulting services providers.
· Makes technical and conforming changes.
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45th Legislature
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First Regular Session 3 March 8, 2001
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