H-3989

AN ACT Relating to local government fiscal notes; amending RCW 43.132.020, 43.132.040, and 43.132.060; and adding a new section to chapter 43.132 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. 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 a 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~~)) the chairperson or ranking minority member of the local government committee, or equivalent committee that considers local government matters, of the senate or house of representatives. 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, 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. 2. 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. 3. 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. 4. A new section is added to chapter 43.132 RCW to read as follows:

The chairperson or ranking minority member of the local government committee, or equivalent committee that considers local government matters, of the senate or house of representatives may request the office of financial management, or the department of community, trade, and economic development if designated by the director of financial management to prepare local government fiscal notes, to prepare a report on the fiscal impacts on counties, cities, towns, and other units of local government that have arisen from any legislation enacted within the last five years. The report shall be prepared and treated in the manner as a fiscal note.