BILL REQ. #:  H-1585.1 

Read first time 02/15/2005.   Referred to Committee on Finance.

     AN ACT Relating to fiscal notes for bills making tax law changes; and amending RCW 43.88A.020.

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

Sec. 1   RCW 43.88A.020 and 1994 c 219 s 3 are each amended to read as follows:
     (1) The office of financial management shall, in cooperation with appropriate legislative committees and legislative staff, establish a procedure for the provision of fiscal notes on the expected impact of bills and resolutions which increase or decrease or tend to increase or decrease state government revenues or expenditures. Such fiscal notes shall indicate by fiscal year the impact for the remainder of the biennium in which the bill or resolution will first take effect as well as a cumulative forecast of the fiscal impact for the succeeding four fiscal years. Fiscal notes shall separately identify the fiscal impacts on the operating and capital budgets. Estimates of fiscal impacts shall be calculated using the procedures contained in the fiscal note instructions issued by the office of financial management.
     (2) In establishing the fiscal impact called for pursuant to this chapter, the office of financial management shall coordinate the development of fiscal notes with all state agencies affected.
     (3) For fiscal notes on bills making tax law changes, the department of revenue shall estimate the direct impact a tax law change will have on revenue, as well as expected changes in taxpayer behavior and overall economic activity, including expected changes in the level of employment and state expenditures that would occur due to a tax law change.