ARIZONA STATE SENATE
Phoenix, Arizona
Purpose:
Requires, upon request of a
member of the Legislature, staff from the Joint Legislative Budget Committee
(JLBC) to prepare an economic impact report on legislation impacting the
private sector.
Background:
The
Joint Legislative Budget Committee (JLBC) was established in 1966 (Laws 1966,
Chapter 96) and is charged with making recommendations to the Legislature relating
to the state budget, state revenues, organization and functions of state
agencies and other fiscal issues that impact the State. The Committee is staffed by a Director,
budget analysts and economists. The
primary statutory duty of the JLBC staff is to review the Governor’s budget and
make recommendations for revisions in expenditures.
In
addition to forecasting revenues and making expenditure recommendations for the
state budget, JLBC staff reviews legislation for fiscal impacts. Members of the Legislature may request a
fiscal note or fiscal memo from the staff analyzing the impacts to state
revenues and expenditures of proposed legislation. Limited impacts to political subdivisions may also be analyzed.
H.B.
2619 expands the statutory duties of JLBC staff by requiring them to provide
analyses of economic impacts to the private sector that may result from
proposed legislative mandates. Upon request of a member of the Legislature, an
analysis is required for legislation that has an impact of $1 million or more
in direct costs to the private sector.
H.B.
2619 appropriates $100,000 to JLBC for procuring economic consulting services
in order to assist with the analyses.
The staff at JLBC is currently assessing whether the appropriation is
sufficient to meet the requirements of the legislation.
Provisions:
1. Requires, upon request of a member of the Legislature, staff from JLBC to prepare an economic impact report on proposed legislation that may result in a collective fiscal impact of $1 million or more to private entities.
2. Requires a requested economic impact report to be submitted to the President of the Senate or Speaker of the House of Representatives (as appropriate) before the legislation is third read in the chamber from which the request is made. Applies this provision to fiscal note (state fiscal analysis) also.
3. Allows the Speaker or President to waive the requirement that an economic impact report or fiscal note be submitted prior to third reading. However, the report or note must be completed before the legislation may be considered by a standing committee in the other chamber.
4. Requires the economic impact report to identify:
·
Mandates
and corresponding direct costs of $1 million or more, collectively, to all
private entities that are required to comply with the mandate.
·
Any
reductions in existing appropriations or direct spending, or increases in any
revenues or fees contained in the legislation.
·
Any
existing sources of state financial assistance that might assist private
entities in meeting the direct costs of the mandate.
5. Specifies exemptions from the economic report requirement, such as the legislation contains an emergency clause or it enforces constitutional or federal rights.
6. Defines “direct cost” and “mandate.”
7. Contains a legislative intent clause.
8. Terminates the program on July 1, 2011.
9. Appropriates $100,000 from the state general fund to JLBC staff to contract for economic consulting services. This appropriation is non-lapsing.
House Action
APPROP 3/6/01 DPA 15-0-0-1
3rd Read 3/14/01 54-1-5
Prepared by Senate Staff
April 17, 2001