AN
ACT Relating to the process of preparing local government fiscal notes and the
review of fiscal impacts of legislation; amending RCW 43.132.020, 43.132.040,
and 43.132.060; adding new sections to chapter 43.132 RCW; and creating a new
section.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. It is
the intent of the legislature to enhance the local government fiscal note
process by providing for updated fiscal information on pending legislation and
to establish a process for a more comprehensive report on the fiscal impacts to
local governments arising from laws that have been enacted. Further, it is the
intent of the legislature that the varying effects of legislation on different
local governments be recognized. This act is enacted in recognition of the
responsibilities imposed by RCW 43.135.060.
Sec.
2. RCW
43.132.020 and 1995 c 399 s 79 are each amended to read as follows:
The
director of financial management or the director's designee shall, in
cooperation with appropriate legislative committees and legislative staff,
establish a mechanism for the determination of the fiscal impact of proposed
legislation which if enacted into law would directly or indirectly increase or
decrease revenues received or expenditures incurred by counties, cities, towns,
or any other ((political subdivisions of the state)) units of local
government. The office of financial management shall, when requested by a
member of the state legislature, report in writing as to such fiscal impact and
said report shall be known as a "fiscal note".
Such
fiscal notes shall indicate by fiscal year the total impact on the ((subdivisions))
local governments involved for the first two years the legislation would
be in effect and also a cumulative six year forecast of the fiscal impact.
Where feasible and applicable, the fiscal note also shall indicate the fiscal
impact on each individual county or on a representative sampling of cities,
towns, or other ((political subdivisions)) units of local government.
A
fiscal note as defined in this section shall be provided only upon request of
any member of the state legislature. A ((legislator also may)) request
((that such)) for a fiscal note ((be revised to reflect the
impact of proposed amendments or substitute bills)) on legislation shall
be considered to be a continuing request for a fiscal note on any formal
alteration of the legislation in the form of amendments to the legislation that
are adopted by a committee or a house of the legislature or a substitute
version of such legislation that is adopted by a committee and preparation of
the fiscal note on the prior version of the legislation shall stop, unless the
legislator requesting the fiscal note specifies otherwise or the altered
version is first adopted or enacted in the last week of a legislative session.
Fiscal
notes shall be completed within ((seventy-two hours)) one week of
the request unless a longer time period is allowed by the requesting
legislator. In the event a fiscal note has not been completed within ((seventy-two
hours)) one week of a request, a daily report shall be prepared for
the requesting legislator by the director of financial management which report
summarizes the progress in preparing the fiscal note. If the request is
referred to the director of community, trade, and economic development, the
daily report shall also include the date and time such referral was made.
Sec.
3. RCW
43.132.040 and 1986 c 158 s 18 are each amended to read as follows:
When
a fiscal note is prepared and approved as to form and completeness by the
director of financial management, the director shall transmit copies
immediately to:
(1)
The requesting legislator;
(2)
With respect to proposed legislation held by the senate, the chairperson of the
committee which holds or has acted upon the proposed legislation, the
chairperson of the ways and means committee or equivalent committees with
jurisdiction over matters normally considered by a ways and means committee,
the chairperson of the local government committee or equivalent committee
that considers local government matters, and the secretary of the senate;
and
(3)
With respect to proposed legislation held by the house of representatives, the
chairperson of the committee which holds or has acted upon the proposed
legislation, the chairpersons of the ((revenue and taxation and
appropriations committees)) ways and means committee or equivalent
committees with jurisdiction over matters normally considered by a ways and
means committee, the chairperson of the local government committee or
equivalent committee that considers local government matters, and the chief
clerk of the house of representatives.
Sec.
4. RCW
43.132.060 and 1977 ex.s. c 19 s 6 are each amended to read as follows:
(1)
Nothing in this chapter shall prevent either house of the legislature from
acting on any bill or resolution before it as otherwise provided by the state
Constitution, by law, and by the rules of the senate and house of
representatives, nor shall the lack of any fiscal note as provided in this
chapter or any error in the accuracy thereof affect the validity of any measure
otherwise duly passed by the legislature.
(2)
Subsection (1) of this section shall not alter the responsibilities of RCW
43.135.060.
NEW
SECTION. Sec. 5. A
new section is added to chapter 43.132 RCW to read as follows:
(1)
The office of financial management, in consultation with the department of
community, trade, and economic development, shall annually prepare a report on
the fiscal impacts to counties, cities, towns, and other units of local
governments, arising from selected laws enacted in the preceding five-year
period. The office of financial management, in consultation with the
department of community, trade, and economic development, shall annually select
up to five laws to include within this report from a recommended list of laws
approved by the legislature. The office of financial management, in
consultation with the department of community, trade, and economic development,
may select up to five laws to include within this report if the legislature
does not approve a recommended list.
(2)
The preparation of the reports required in subsection (1) of this section is
subject to available funding.
NEW
SECTION. Sec. 6. A
new section is added to chapter 43.132 RCW to read as follows:
The office of financial management, in consultation with the
department of community, trade, and economic development, shall prepare a
report for the legislature on or before December 31st of every even-numbered
year on local government fiscal notes, and reports on the fiscal impacts on
local governments arising from selected laws, that were prepared over the
preceding two-year period.
