Requires legislative fiscal impact notes to include objective calculations of anticipated economic impacts for next three years on state or political subdivisions.
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 manner.
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 apart 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: S.3829 - Investigations Committee/A.5984 - Governmental 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.
STATE OF NEW YORK ________________________________________________________________________ 3456 2011-2012 Regular Sessions IN SENATE February 23, 2011 ___________Introduced by Sens. GRIFFO, DeFRANCISCO, JOHNSON, LARKIN, RANZENHOFER -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations 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 THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 51 of the legislative law is REPEALED and a new section 51 is added to read as follows: S 51. FISCAL IMPACT NOTES ON BILLS AFFECTING THE STATE OR POLITICAL SUBDIVISIONS. 1. AS USED IN THIS SECTION: (A) THE TERM "POLITICAL SUBDIVISION" MEANS ANY COUNTY, CITY, TOWN, VILLAGE, SPECIAL DISTRICT OR SCHOOL DISTRICT, OR ANY AGENCY, AUTHORITY, COMMISSION, DEPARTMENT OR INSTRUMENTALITY THEREOF. (B) THE TERM "QUALIFYING BILL" MEANS ANY BILL OR AMENDMENT TO A BILL FILED ON OR AFTER THE EFFECTIVE DATE OF THIS SECTION WHICH ESTABLISHES OR ELIMINATES A STATE PROGRAM, SIGNIFICANTLY CHANGES SERVICES REQUIRED TO BE PROVIDED BY SUCH PROGRAM, OR RESULTS IN A CHANGE IN REVENUES OR EXPENSES OF THE STATE OR ANY POLITICAL SUBDIVISION. 2. BEFORE DISCHARGING QUALIFYING BILLS FROM CONSIDERATION, THE SENATE FINANCE COMMITTEE OR THE ASSEMBLY WAYS AND MEANS COMMITTEE SHALL PREPARE FOR EACH SUCH BILL A FISCAL IMPACT STATEMENT CLEARLY DETAILING THE ESTI- MATED COST OR SAVINGS ENTAILED BY SUCH BILL TO THE STATE AND AFFECTED POLITICAL SUBDIVISION FOR THE THREE FISCAL YEARS FOLLOWING ADOPTION OF SUCH BILL. SUCH FISCAL IMPACT STATEMENT SHALL ALSO PROVIDE THE SOURCE OR SOURCES OF SUCH ESTIMATES. 3. A FISCAL IMPACT STATEMENT REQUIRED TO BE PREPARED UNDER THIS SECTION SHALL BE MADE AND SHALL REMAIN A PART OF THE BILL IT DESCRIBES, AND SHALL BE AFFIXED TO THE BILL BEFORE IT IS LAID UPON THE MEMBERS' DESKS FOR CONSIDERATION.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05960-01-1 S. 3456 2
4. IN DETERMINING THE FISCAL IMPACTS OF A BILL, THE SENATE FINANCE COMMITTEE AND ASSEMBLY WAYS AND MEANS COMMITTEE SHALL ESTIMATE SUCH IMPACTS ON THE BASIS OF ANY OR ALL OF THE FOLLOWING: (A) INDIVIDUAL POLITICAL SUBDIVISIONS; (B) AGGREGATES OF POLITICAL SUBDIVISIONS EITHER STATEWIDE OR BY A LESSER GEOGRAPHIC AREA; (C) REPRESENTATIVE POLITICAL SUBDIVISIONS WITH RELEVANT CHARACTER- ISTICS SUCH AS POPULATION, AREA, AVERAGE INCOME, WEIGHTED AVERAGE DAILY ATTENDANCE OF PUPILS, OR ANY OTHER RELEVANT CHARACTERISTICS APPROPRIATE TO THE ESTIMATE; OR (D) ANY OTHER APPROPRIATE, CONVENIENT OR ACCESSIBLE GROUPING OF CHAR- ACTERISTICS OR POLITICAL SUBDIVISIONS. 5. ESTIMATED OR ACTUAL FISCAL IMPACTS DISCLOSED UNDER THIS SECTION SHALL BE REPORTED IN UNITS OF MONEY, SERVICES, PERSONNEL, EQUIPMENT, OR ANY OTHER APPROPRIATE, CONVENIENT OR ACCESSIBLE UNIT OR UNITS OF MEAS- UREMENT. 6. IF THE ESTIMATES CONTAINED IN A FISCAL IMPACT STATEMENT ARE INACCU- RATE, SUCH INACCURACIES SHALL NOT AFFECT, IMPAIR OR INVALIDATE SUCH BILL. 7. FISCAL IMPACT STATEMENTS SHALL NOT BE REQUIRED FOR BILLS: (A) SUBJECT TO THE PROVISIONS OF SECTION FIFTY OF THIS ARTICLE, OR (B) ACCOMPANIED BY SPECIAL HOME RULE REQUESTS SUBMITTED BY EACH AFFECTED POLITICAL SUBDIVISION, OR (C) WHICH PROVIDE ONLY DISCRETIONARY AUTHORITY TO POLITICAL SUBDIVISIONS, OR (D) SUBMITTED PURSUANT TO SECTION TWENTY- FOUR OF THE STATE FINANCE LAW. S 2. This act shall take effect on the first of January next succeed- ing the date on which it shall have become a law.