SENATE BILL REPORT

                   SB 6104

              As Reported By Senate Committee On:

            Government Operations, January 23, 1996

Title:  An act relating to fiscal notes for initiatives.

Brief Description:  Requiring fiscal notes for initiatives.

Sponsors:  Senators Haugen, Winsley, Sheldon, McCaslin, Prentice, Kohl, Franklin and Spanel.

Brief History:

Committee Activity:  Government Operations:  1/18/96, 1/23/96 [DPS].

SENATE COMMITTEE ON GOVERNMENT OPERATIONS

Majority Report:  That Substitute Senate Bill No. 6104 be substituted therefor, and the substitute bill do pass.

  Signed by Senators Haugen, Chair; Sheldon, Vice Chair; Goings, Hale, Heavey, McCaslin and Winsley.

Staff:  Diane Smith (786-7410)

Background:  Fiscal notes are prepared by appropriate state agencies and local governments at the direction of the Office of Financial Management (OFM) and the Department of Community, Trade, and Economic Development (DCTED), respectively, with OFM serving as the coordinator of all fiscal notes.  The fiscal note analyzes a bill to determine its financial impact on government.  Fiscal notes are requested by members of the Legislature or by committee staff.

There is no provision for the preparation of fiscal notes on the impact of initiatives to the Legislature or to the people.  Initiatives to the Legislature are subject to fiscal note analyses when they become bills.  Initiatives to the people do not receive fiscal note analysis.

Summary of Substitute Bill:  The Office of Financial Management is directed to provide a fiscal note on any initiative either to the people or the Legislature within 30 days of the Secretary of State's certification that the signatures on the petition are constitutionally sufficient.  These fiscal notes are filed with the Secretary of State.  They are to include the fiscal impact of the initiative on both state and local governments.

Substitute Bill Compared to Original Bill:  The original bill allowed two weeks for the preparation of the fiscal note and did not include the amendment to the statute pertaining to fiscal impacts on counties, cities and towns.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  The voters and local governments desperately need this critical information in order to make informed decisions about initiative measures.

Testimony Against:  None.

Testified:  Gary Lowe, Association of Counties (pro); Fred Hellberg, OFM; Don Whiting, Secretary of State.